United Bank of India climbs higher after cutting deposit rates

United Bank of India rose 1.35% at Rs 18.75 at 10:15 IST on BSE after the bank said that it has revised downwards the 1 year domestic deposit rates from 18 August 2017.

The announcement was made after market hours yesterday, 16 August 2017.

Meanwhile, the S&P BSE Sensex was up 105.82 points or 0.31% at 31,870.74. The S&P BSE Small-Cap index was up 152.28 points or 0.98% at 15,763.96.

On the BSE, 3,990 shares were traded in the counter so far as against average daily volume of 98,726 shares in the past one quarter. The stock had hit a high of Rs 18.90 and a low of Rs 18.60 so far during the day. The stock had hit a 52-week high of Rs 29.25 on 7 February 2017. The stock had hit a 52-week low of Rs 18.10 on 11 August 2017.

The stock had underperformed the market over the past one month till 16 August 2017, falling 5.37% compared with the Sensex's 0.78% decline. The stock had also underperformed the market over the past one quarter, declining 17.59% as against the Sensex's 3.89% rise. The scrip had also underperformed the market over the past one year, dropping 14.35% as against the Sensex's 13.21% rise.

The small-cap state-run bank has equity capital of Rs 1561.82 crore. Face value per share is Rs 10.

United Bank of India said that it has reduced domestic term deposit rates for deposit upto Rs 1 crore from 6.25% to 6.1% per annum.

Deposit rate for more than Rs 1 crore has been reduced from 4.5% to 4.35% and deposit of amount upto Rs 50 lakh has been revised downwards from 4% to 3.5% effective 18 August 2017.

United Bank of India reported net loss of Rs 211.46 crore in Q1 June 2017 compared with net profit of Rs 38.32 crore in Q1 June 2016. The bank's total income rose 1.2% to Rs 2852.61 crore in Q1 June 2017 over Q1 June 2016.

The Government of India held 85.23% stake in United Bank of India as per the shareholding pattern as on 30 June 2017.

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