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United Bank of India reports Q3 net loss at Rs 637 cr

Press Trust of India  |  New Delhi 

Public sector United of India has reported a net loss of Rs 637.53 crore during third quarter ended December 2017 on dip in investment income and a substantial rise in NPA provisioning.

During same period of previous fiscal, the had registered a net profit of Rs 64.10 crore.

"Owing to a drop in trading profit (nearly Rs 375 crore), growth in depreciation on investments (428 per cent) on account on unfavourable market conditions and spike in NPA provisioning by about 95 per cent (Rs 470 crore) during the period, the overall profitability has been adversely affected," the said in a statement.

Total income of the bank also fell to Rs 2,483.01 crore during the October-December period of 2017-18 from Rs 3,086.06 crore in the same period of 2016-17.

Net interest income was down for the quarter at Rs 347.94 crore, as against Rs 360.98 crore.

Asset quality of the bank worsened with gross non- performing assets (NPAs) hitting 20.10 per cent (Rs 13720.69 crore) of the gross advances as on December 31, 2017 against 15.98 per cent (Rs 10,845.31 crore).

Net NPAs or bad loans too spiked to 11.96 per cent (Rs 7,365.14 crore) from 10.62 per cent (Rs 6,729.89 crore).

A higher NPA ratio required the bank to keep aside Rs 964.07 crore as provision for the quarter, against Rs 494.52 crore it has kept aside for year ago third quarter.

Among others, the board of directors of the bank approved the United Bank of India-Employee Stock Purchase Scheme 2018 (UBI-ESPS 2018).

The Kolkata-headquartered said it has provided Rs 167.44 crore for bad loans under insolvency process during this quarter against seven accounts.

In all, it has to make Rs 394.13 crore of additional provisioning, of which Rs 262.75 crore is to be provided for during 2017-18.

Bank's total deposits remained almost flat at Rs 12,5579 crore, however, savings deposits increased by Rs 220 crore from a year ago.

Advances were up at Rs 68,250 crore in third quarter this fiscal from Rs 67,866 crore.

"The advance portfolio has expanded by about Rs 384 crore mainly due to growth in MSME advance by 17.70 per cent and growth in housing loan and by 23.63 per cent and 31.31 per cent, respectively.

Stock of closed 0.66 per cent up at Rs 15.25 on BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, February 12 2018. 17:25 IST