United Bank of India reports fifth quarterly loss, restricts NPA

State-run lender United Bank of India has reported net loss for the fifth consecutive quarter even as it managed to restrict fresh generation of sticky loans by two-third.

The bank said its loss for the quarter to June was Rs 389 crore compared with Rs 212 crore loss in the year ago period, on account of high sticky loans and spike in mark-to-market treasury losses.

The ratio of gross non-performing assets slipped to 22.73% from 17.17% a year back, raising the provisioning requirement 13% to Rs 856 crore.

It has also provided Rs 252 crore towards mark-to-market treasury losses in the June quarter. Its operating profit fell 33% at Rs 282 crore over Rs 243 crore in the year ago quarter due to fall in treasury income which offset the doubling of net interest income.

Nonetheless, UBI has shown improvement in asset quality sequentially. Gross NPA ratio improved 137 bps from 24.1% at the end of March. This helped the lender, which has been under Reserve Bank of India’s prompt corrective action mechanism, cut losses in the June quarter compared to March quarter’s loss of Rs 413 crore.

The bank said it will continue its thrust on containing of fresh slippages and NPA reduction through resolution of large NPA accounts. It managed to restrict fresh slippage to Rs 547 crore in June quarter against Rs 1669 crore generation in the year ago period.

It has created a stressed asset management vertical under the finance ministry’s direction

Read More

United Bank of india reports Q4 net loss

                                  

State-owned United Bank of India today reported a net loss of Rs 260.62 crore for the fourth quarter ended March 2018 due to high non-performing assets (NPAs). The Kolkata-headquartered bank had reported a profit of Rs 73.56 crore in the January-March quarter of 2016-17.

The bank's total income was Rs 2,635.69 crore in the fourth quarter of the last fiscal, a marginal decline from Rs 2,672.88 crore in the similar quarter in the year-ago period, it said in a regulatory filing.

The gross NPAs of the bank stood at 24.1 percent of the assets at end-March 2018, up from 15.53 percent at end-March 2017.

Similarly, the net NPA jumped to 16.49 percent of loans compared to 10.02 percent at the end of March 2017.

The bank set aside Rs 1,384.95 crore towards provisions and contingencies in the fourth quarter of the last fiscal, significantly higher than Rs 1,059.36 crore in the year-ago period.

Read More

United bank of india Q3 result, reported net loss

Public sector United Bank of India (UBI) has reported a net loss of Rs637.53 crore during third quarter ended December 2017 on dip in investment income and a substantial rise in non performing assets (NPA) provisioning.

During same period of previous fiscal, the bank had registered a net profit of Rs64.10 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.

Read More

RBI adds more restrictions on United Bank of India due to high NPAs

After Bank of India, Reserve Bank of India on Tuesday imposed additional restrictions on United Bank of India under the Prompt Corrective Action (PCA) framework given the high stress levels owing to the bank’s high bad loans.

“The action points focus on profit retention, capital augmentation, provision coverage, diversification of credit portfolio, rationalisation of expansion and cost control," UBI said Wednesday said in its disclosure filing to stock exchanges.

Read More

United Bank of India slips into red, posts loss in Q2

Kolkata-based United Bank of India posted a net loss of about Rs 345 crore for the second quarter of the present financial year, against a net profit of Rs 44 crore in the same period last financial year.

The bank's provision coverage ratio (PCR) stood at 57.41 per cent at the end of Q2FY18, against 51.70 per cent at the end of Q2FY17. Its provisions in the last quarter stood at about Rs 753 crore, against Rs 401 crore at the end of Q2 of FY17.

Read More

United Bank of India reported net loss in Q1 result

State-owned United Bank of India on Saturday reported a net loss of Rs211.46 crore during the first quarter ended June, on rise in non-performing assets (NPAs) and higher provisioning.

The bank had registered a net profit of Rs38.32 crore in the June quarter of previous fiscal. Total income of the bank during the reported quarter was marginally up at Rs2,852.61 crore as against Rs2,819.37 crore year ago, the bank said in a regulatory filing.

Read More

PSB merger: 7 banks miss August deadline to meet 25% public float norm

As discussions on the merger of some public-sector banks (PSBs) pick up pace, seven PSBs, especially United Bank of India, could miss the August deadline to meet the 25% public float norm. So the finance ministry may request capital markets regulator Securities and Exchange Board of India to extend the deadline for the PSBs, sources told FE. As of end-March, the government held more than 75% in seven PSBs — United Bank of India, Indian Bank, Bank of Maharashtra, Central Bank ofIndia, Punjab and Sind Bank, Indian Overseas Bank and UCO Bank.

Read More

Five banks have reported gross NPA ratios of over 15%

Bad loan crisis of state-owned banks surged 56.4 per cent in the 12-month period ending December 2016. It is set to rise further in the next two quarters with the small and medium sectors struggling to repay the loans after the NDA government’s demonetization move in November 8. It was reported by The Indian Express that the gross non-performing assets (NPA) surged to Rs 614,872cr.

Despite the Reserve Bank of India (RBI) announcing numerous restructuring schemes, the bad loans have risen up from Rs 261,843cr by 135 per cent in last two years. They now constitute 11 per cent of of the gross advances of Public Sector Unit (PSU) banks. In all, the total NPAs including both the public and private sector banks were Rs 697,409cr in December 2016. These figures were compiled by Care Ratings.

Read More