Public sector lender United Bank of India has reported a net profit of Rs 113.56 crore for the December quarter (Q3). This development is supported by a whopping hike in its operating profit and a substantial drop in provisions for bad loans. Last year, the lender posted a net loss of Rs1139.25 crore.
The Kolkata-based bank’s net profit for the December quarter this fiscal, however, dropped by over 8 percent quarter-to-quarters from Rs123.88 crore for the September quarter.
In Quarter 3, gross non-performing assets (NPAs) in absolute terms decreased to Rs11456.79 crore from Rs11, 544.19 crore in Q2 this fiscal, as per a stock exchange filing by the lender.
Gross NPAs as a percentage of total loans declined by 3 basis points (bps) to 15.48 percent from 15.51 percent during the previous quarter. During the period, under review net NPA ratio, however, infalted by 68 bps sequentially at 8.56 percent.
Managing director and CEO of the lender Ashok Kumar Pradhan said during the third quarter, the bank’s overall credit growth was around 7 percent due to de-growth in corporate credit. Retail credit saw a 20 percent growth during the quarter under review.
During Q3 last year, the lender’s net interest income (NII) inflated by 115.62 percent y-o-y to Rs819.43 crore, while non-interest income decreased 27.95 percent y-o-y to Rs560.59 crore.
Total income during the period under review rose 4.39 percent y-o-y to Rs2, 971.38 crore. NIM stood at 2.98 percent, up 98 bps over 2 percent in Q3FY19.