United Bank net drops 78% to Rs. 105 cr on increased provisioning

Kolkata-based United Bank of India (UBI) reported a near 78 per cent decline in net profit to Rs. 105 crore for the quarter ending March 31, 2015.

The PSU lender had reported a net profit of Rs. 469 crore in the corresponding quarter last fiscal.

Increased provisioning by over 153 per cent to Rs. 676 crore during the fourth quarter dragged down profits. Provisioning in the corresponding quarter in the last fiscal stood at Rs. 267 crore.

Total income earned during the quarter moved up to Rs. 3,153 crore (a near 6 per cent increase) over the Rs. 2,983 crore it reported in the year-ago period.

For the full year (FY-15), UBI reported a net profit of Rs. 256 crore. It had reported a net loss of Rs. 1,213 crore in FY-14.

Total income in FY-15 stood at Rs. 11,927 crore (Rs 11,806 crore).

NPAs

The bank brought down its gross non-performing assets to Rs. 6,553 crore, down by nearly 8 per cent from the Rs. 7,118 crore it reported in FY-14.

Gross NPAs in FY-15 improved to 9.49 per cent from 10.47 per cent last year.

Net NPAs stood at Rs. 4,081 crore for the full year, down from the Rs. 4,664 crore it reported in the year-ago-period.

Net NPAs improved to 6.22 per cent (7.18 per cent).

The UBI stock closed at Rs. 27.40, down by 0.18 per cent at the BSE on Thursday.


Source : Thehindubusinessline