UBI posts Rs 1139 crore net loss in Q3

State-run United Bank of India (UBI) on Tuesday reported a net loss of Rs 1139.25 crore for the quarter ended December 31, 2018, due to higher provisioning to cover bad loans, as against a net loss of Rs 637.53 crore for the same period a year ago.

The lender, which is under the prompt corrective action (PCA) of the Reserve Bank of India, had reported a net loss of Rs 883.17 crore for the second quarter this fiscal.

During the third quarter this fiscal, gross non-performing assets (NPAs) in absolute terms decreased by 2.81 per cent quarter-on-quarter to Rs 14,737.61 crore from Rs 15,163.28 crore in the September quarter.

Its gross NPA as a percentage of total loans also fell to 21.27 per cent from 22.69 per cent during the previous quarter. During the period under review net NPA ratio at 12.08 per cent also decreased sequentially.

Provisions and contingencies jumped 83.10 per cent year-on-year to Rs 1967.20 crore from Rs 1074.35 crore in the corresponding period of FY18. Provisions for non-performing assets at Rs 1801.51 crore, soared by about 87 per cent.

Total income during the period posted a 14.63 per cent growth at Rs 2846.23 crore while non-interest income increased by 63 per cent year-on-year.

Net interest income (NII) soared by over 9 per cent year-on-year to Rs 380.04 crore from Rs 347.94 crore in the corresponding period last fiscal.

--IANS

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