United Bank Q1 net skids 74%

United Bank of India net profit dropped 74 per cent to Rs 44.73 crore in the first quarter of 2013-14 from Rs 173.89 crore in the corresponding year-ago quarter.

The total income stood at Rs 2,869 crore (Rs 2,499 crore), up 14.79 per cent year-on-year.

Net interest margin was down to 2.28 per cent (3.05 per cent). The bank’s capital adequacy ratio dropped to 10.82 per cent (12.5 per cent).

The bank on Monday said income from loans and advances grew to Rs 2463.74 crore from Rs 2283.81 crore in Q1 of FY13. Non-interest income moved up 88 per cent to 405.06 crore.

Net NPA was at Rs 2,699.59 crore and net the NPA ratio was 3.77 per cent. The bank in a statement said it made a cash recovery of Rs 65.38 crore and the outstanding restructured portfolio was placed at Rs 4,781 crore. It constituted 6.68 per cent of the total advances.

During the quarter, the bank opened 1.33 lakh basic savings and deposit accounts. It has also delivered 9.46 lakh smart cards to financial inclusion beneficiaries.

jayanta.mallick@thehindu.co.in

Source: thehindubusinessline