United Bank Q1 Result, Profit down 27% at Rs 38 cr

State-run United Bank of India today reported a 26.6 per cent fall in net profit to Rs 38.32 crore for first quarter ended June 30, on higher bad loans. 

The Kolkata-headquartered bank had registered a net profit of Rs 52.22 crore in the corresponding April-June quarter of 2015-16. However, the first quarter results were better sequentially, as the bank had posted a loss of Rs 413.04 crore in January-March quarter of 2015-16. 

Total income during the reported quarter fell to Rs 2,819.37 crore as against Rs 2,896.75 crore, showed the bank's balance sheet posted with regulators. 

The asset quality of the bank worsened with gross non-performing assets (NPAs) rising to 14.29 per cent of the gross advances as of June 2016, up from 9.57 per cent in year ago period. Likewise, net NPAs or bad loans rose to 9.85 of the net advances as against 6.30 per cent year earlier. In absolute terms, gross NPAs were Rs 10,116.13 crore as against Rs 6,532.83 crore. 

While, net NPAs were to the tune of Rs 6,579.28 crore, up from Rs 4,091.20 crore year ago. However, despite a high rate of NPAs, bank's provisioning for bad loans were lower at Rs 378.30 crore for June quarter of the fiscal, from Rs 493.58 crore year earlier. 

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United Bank of India faces Rs 413 crore loss in Q4

Higher non-performing assets and provisioning pulled Kolkata-based United Bank of India into red, as the bank posted a net loss of about Rs 413.04 crore for Q4 of FY16, against a profit of around Rs 105.52 crore in the same period last year. Notably, in Q3 of the present financial year, the bank had posted a net profit of Rs 17 crore.

The bank's non performing assets (NPA) rose sharply in the last quarter. The bank's net NPA in the last quarter was 9.04 per cent (6.22 per cent in Q3 of FY15) while the gross NPA was 13.26 per cent ((9.49 per cent in Q4FY15).

The bank said the higher NPAs were largely on account of asset quality review, as advised by RBI, along with economic slowdown during the quarter.

The provisions against NPA loans went up from about Rs 100 crore as on 31 March 2015 to about Rs 925 crore as on 31 March 2016. The total provisions (other than tax) and contingencies of the bank in Q4 of FY16 stood at Rs 1173 crore, against about Rs 676 crore in the corresponding period last year.

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United Bank Q3 Net Profit Down 59% at Rs 17 Crore

Public sector United Bank of India today reported 59 per cent decline in net profit to Rs 17 crore for the December quarter despite decrease in bad loans. 

The bank had posted a net profit of Rs 42 crore in the third quarter of the previous fiscal. 

The total income declined marginally to Rs 2,828 crore during the quarter under review from Rs 2,935 crore in the same quarter last fiscal. 

Decline in operating profit as well as net profit is due to reduced interest income and trading profit, United Bank of India said in a statement. 

The bank's Net Interest Income (NII) declined by 2 per cent to Rs 608 crore as against Rs 622 crore in the corresponding quarter of the previous fiscal, it said. 

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