UBI Q2 net profit at Rs 124cr, bad loans fall substantially

State-owned United Bank of India reported a net profit of Rs 123.88 crore in the quarter ended September 30, on the back of substantially lower dud loans, leading to lower provisioning requirement.

The Kolkata-headquartered bank had posted a net loss of Rs 883.17 crore in the July-September period of 2018-19.

The lender's total income rose to Rs 3,013.74 crore in the September 2019 quarter, compared with Rs 2,600.47 crore earned in the corresponding period of the previous financial year, the bank said in a regulatory filing on Wednesday.

In the quarter under review, the lender reported slippages of around Rs 1,000 crore, out of which Rs 800 crore was from corporate accounts, MD and CEO Ashok Pradhan told reporters in Kolkata.

"The bank has done significantly well during the second quarter. We have registered net profit for three consecutive quarters," he said.

The lender is awaiting resolutions to the tune of Rs 6,000 crore in the NCLT, out of which Rs 1,600 crore is from exposure to power and steel sectors alone.

On the proposed amalgamation between Punjab National Bank, Oriental Bank of Commerce and UBI, Pradhan said, "The process is progressing smoothly so far. We are giving prime attention to HR issues."