New Delhi: United Bank of India on Tuesday reported a 26.6 per cent fall in net profit at Rs 38.32 crore for the fiscal first quarter that ended on June 30, on higher bad loans.
The Kolkata-headquartered state-run bank had registered a net profit of Rs 52.22 crore for the corresponding period a year ago.
However, the first quarter results were better sequentially, as the bank had posted a loss of Rs 413.04 crore in the January-March quarter of 2015-16.
Total income in the quarter under review fell to Rs 2,819.37 crore, as against Rs 2,896.75 crore in the year-ago period, the bank's balance sheet posted with regulators showed.
The asset quality of the bank worsened with gross non-performing assets (NPAs) rising to 14.29 per cent of gross advances as of June 2016, up from 9.57 per cent a year ago.
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. Net NPAs were to the tune of Rs 6,579.28 crore, up from Rs 4,091.20 crore a year ago.
However, despite a high rate of NPAs, the bank's provisioning for bad loans was lower at Rs 378.30 crore for the June quarter of the fiscal year, from Rs 493.58 crore a year earlier.
It informed that the board of directors at its meeting held on Tuedsay has approved preferential allotment of equity to the government up to Rs 810 crore.
Shares in United Bank of India, on Tuesday, ended 0.68 per cent higher at Rs 22.10 apiece on the BSE, whose benchmark Sensex index finished down 0.35 per cent.
The Kolkata-headquartered state-run bank had registered a net profit of Rs 52.22 crore for the corresponding period a year ago.
However, the first quarter results were better sequentially, as the bank had posted a loss of Rs 413.04 crore in the January-March quarter of 2015-16.
Total income in the quarter under review fell to Rs 2,819.37 crore, as against Rs 2,896.75 crore in the year-ago period, the bank's balance sheet posted with regulators showed.
The asset quality of the bank worsened with gross non-performing assets (NPAs) rising to 14.29 per cent of gross advances as of June 2016, up from 9.57 per cent a year ago.
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. Net NPAs were to the tune of Rs 6,579.28 crore, up from Rs 4,091.20 crore a year ago.
However, despite a high rate of NPAs, the bank's provisioning for bad loans was lower at Rs 378.30 crore for the June quarter of the fiscal year, from Rs 493.58 crore a year earlier.
It informed that the board of directors at its meeting held on Tuedsay has approved preferential allotment of equity to the government up to Rs 810 crore.
Shares in United Bank of India, on Tuesday, ended 0.68 per cent higher at Rs 22.10 apiece on the BSE, whose benchmark Sensex index finished down 0.35 per cent.
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