United Bank of India posted a profit before tax of Rs 129 crore in Q3 of FY20, against loss before tax at Rs 1,585 crore in the same period last financial year.
The gross NPA of the bank as a percentage of total lending stood at 15.48 per cent, against 21.27 per cent in the corresponding period of the last financial year. The net NPA stood at 8.56 per cent, against 12.08 per cent in the same period of the last financial year.
Statutory ban on loan waivers
Ashok Kumar Pradhan, Managing Director and CEO, United Bank of India, said that there should be a “statutory ban” on loan waivers in the country. The series of agricultural loan waivers announced by the various state governments has impaired credit culture and has made recovery difficult, he said.
United Bank of India has close to Rs 300 crore worth of non-performing assets (NPAs) from the agri loan portfolio. A majority of the bank’s agri loan portfolio is in the eastern and northeastern states including West Bengal, Assam and Odisha.