State-run United Bank of India on Monday reported a net loss of Rs 637.53 crore for the quarter ended December 31, 2017, against a net profit of Rs 64.10 crore a year ago, due to a massive fall in operating profit and a huge increase in provisions to cover rising bad loans.
The lender’s asset quality worsened further in Q3. Gross non-performing assets (NPAs) in absolute terms rose 26.51 per cent year-on-year (y-o-y) to Rs13,720.69 crore. And, on a quarter-on-quarter (q-o-q) basis, gross NPAs were up by 6.42 per cent from Rs 12,892.67 crore in the September quarter this fiscal, according to a stock exchange filing.
Gross NPA as a percentage of total loans rose to 20.10 per cent from 15.98 per cent a year ago. In the September quarter of this fiscal, the gross NPA ratio was at 18.80 per cent.
During the September-December period last year, the bank’s operating profit saw a 65.76 per cent y-o-y fall to Rs181.53 crore, compared with Rs 530.15 crore a year ago. This was largely due to a near 41 per cent y-o-y decline in treasury profit to Rs297.62 crore and a 3.6 per cent y-o-y fall in net interest income to Rs 347.94 crore. Total income declined by 19.4 per cent y-o-y to Rs 2,483.01 crore with interest earned slipping 12 per cent y-o-y to Rs 2,004.64 crore, compared with Rs 2,271.98 crore a year ago.
During the third quarter, the bank’s provisions and contingencies stood at Rs 1,074.35 crore, up 82.5 per cent y-o-y.
The bank’s provisions for NPAs rose 95 per cent y-o-y to Rs 964.07 crore, up from Rs 494.52 crore. FE