United Bank of India records sound Q3 results despite NPAs
12 Feb 2018 10:47 PM IST
New Delhi: Public sector United Bank 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 bank 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 bank 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).
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