United Bank of India's bad loans jumped by 82-95%.
New Delhi: United Bank of India has reported a fall of 29.6 per cent in net profit at Rs 43.53 crore for the September quarter as it doubled provisions for bad loans.
United Bank of India had registered a net profit of Rs 61.86 crore for the July-September quarter of financial year 2015-16.
Income fell marginally by 1.2 per cent to Rs 2,893.31 crore in the quarter under review, as against Rs 2,927.19 crore a year ago as corporate earnings decreased.
United Bank of India's bad loans, both in terms of net and gross advances, jumped by 82-95 per cent which resulted in a higher allocation for provisioning as per Reserve Bank of India guidelines.
The gross non-performing assets (NPAs) as a percentage of gross advances increased to 16.26 per cent as on September 2016, as against 8.90 per cent a year ago. In absolute terms, gross NPAs were at Rs 11,134.47 crore, up from Rs 6,112.21 crore.
Net NPAs were at 11.19 per cent (Rs 7,185.23 crore) of net loans, up from 5.61 per cent (Rs 3,677.37 crore) in year-ago period.
Thus, the Bank's provision for bad loans and contingencies were raised to Rs 401.03 crore, as compared to Rs 163.10 crore a year ago. The provision coverage ratio as at September 30, 2016 stood at 51.70.
The bank's board of directors has approved preferential allotment of equity shares to Life Insurance corporation (LIC) or any fund up to Rs 300 crore.
The total assets of the bank at the end of September 2016 increased to Rs 1.30 lakh crore, from Rs 1.25 lakh crore.
United Bank of India had registered a net profit of Rs 61.86 crore for the July-September quarter of financial year 2015-16.
Income fell marginally by 1.2 per cent to Rs 2,893.31 crore in the quarter under review, as against Rs 2,927.19 crore a year ago as corporate earnings decreased.
United Bank of India's bad loans, both in terms of net and gross advances, jumped by 82-95 per cent which resulted in a higher allocation for provisioning as per Reserve Bank of India guidelines.
The gross non-performing assets (NPAs) as a percentage of gross advances increased to 16.26 per cent as on September 2016, as against 8.90 per cent a year ago. In absolute terms, gross NPAs were at Rs 11,134.47 crore, up from Rs 6,112.21 crore.
Net NPAs were at 11.19 per cent (Rs 7,185.23 crore) of net loans, up from 5.61 per cent (Rs 3,677.37 crore) in year-ago period.
Thus, the Bank's provision for bad loans and contingencies were raised to Rs 401.03 crore, as compared to Rs 163.10 crore a year ago. The provision coverage ratio as at September 30, 2016 stood at 51.70.
The bank's board of directors has approved preferential allotment of equity shares to Life Insurance corporation (LIC) or any fund up to Rs 300 crore.
The total assets of the bank at the end of September 2016 increased to Rs 1.30 lakh crore, from Rs 1.25 lakh crore.
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