United Bank of India has dipped 5% to Rs 27.25 after reporting a net loss of Rs 1,238 crore for the third quarter ended December 31, 2013 (Q3), due to higher provisioning for bad loans. The state-owned lender had profit of Rs 42 crore in a year ago quarter.
Net interest income (interest earned minus interest expended) of the bank however, increased 20% at Rs 761 crore in December quarter, compared to Rs 634 crore in the corresponding quarter of previous fiscal.
The bank has put aside Rs 1,858 crore in the December quarter towards non-performing assets (NPA), which is over four times of Rs 450 crore it provided for bad loans in the same period a year ago.
Its gross NPA as a percentage of advances, increased to 10.82% from 4.42%, while net NPA rose to 7.44% from 2.22% during the quarter under review.
Meanwhile, the bank said it is halting all its lending activities except the few such as crop loans because it is crippled with 10% of bad loans. The bank is having the worst bad loan ratio in the whole banking industry.
The stock opened at Rs 27 and touched a record low of Rs 26.55 on the NSE. A combined 1.19 million shares changed hands on the counter till noon deals.
Net interest income (interest earned minus interest expended) of the bank however, increased 20% at Rs 761 crore in December quarter, compared to Rs 634 crore in the corresponding quarter of previous fiscal.
The bank has put aside Rs 1,858 crore in the December quarter towards non-performing assets (NPA), which is over four times of Rs 450 crore it provided for bad loans in the same period a year ago.
Its gross NPA as a percentage of advances, increased to 10.82% from 4.42%, while net NPA rose to 7.44% from 2.22% during the quarter under review.
Meanwhile, the bank said it is halting all its lending activities except the few such as crop loans because it is crippled with 10% of bad loans. The bank is having the worst bad loan ratio in the whole banking industry.
The stock opened at Rs 27 and touched a record low of Rs 26.55 on the NSE. A combined 1.19 million shares changed hands on the counter till noon deals.
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