United Bank of India Q4 net up 4.2% at Rs 149 cr

United Bank of India (UBI) today reported a net profit of Rs 149.29 crore for the quarter ended March 2012, up by 4.2% over the corresponding period last year.

For FY12 fiscal, the bank reported a profit of Rs 2,479.23 crore, up by 14.3% over the previous year.

"The rate of growth in profit was slow as FY12 was a difficult year with higher slippage in NPA (Non-Performing Assets) and cost of funds," UBI Chairman and Managing Director Bhaskar Sen said.

The net slippage during the year under review was Rs 1,964 crore and loans worth Rs 3,106 crore were restructured.

The total loss by the bank on account of restructuring will be Rs 121 crore.

The Air India account restructuring alone will account for a loss of Rs 51 crore over next five years, bank officials said.

UBI also reported a lower net interest margin of 3%, down from 3.13%.

Sen expects business growth during the current fiscal to be around 20%.