United Bank Sept-qtr net dips 29.6%; bad loans hit

United Bank Sept-qtr net dips 29.6%; bad loans hit

07/11/2016 17:36

State-owned lender United Bank of India on Monday reported a drop of 29.6 per cent in its standalone net profit after tax at Rs 43.53 crore in July-September quarter ended September 30, 2016, hit by higher provisions against the bad loans.

The bank had posted a standalone net profit at Rs 61.86 crore in corresponding quarter of previous fiscal, United Bank of India said in a filing to the BSE on November 07, 2016.

Further, total income of the bank too fell by 1.2 per cent to Rs 2,893.31 crore in Q2 FY17 from Rs 2,927.19 crore in Q2 FY16.

During the quarter, provisions (other than tax) and contingencies increased to Rs 401.03 crore from Rs 275.26 crore in previous quarter and from Rs 163.10 crore in corresponding quarter of last fiscal.

During the quarter under review, the bank’s gross non-performing assets increased significantly to 16.26 per cent of total loans, compared with 8.90 per cent in the year-ago quarter. Net NPA of the bank too grew to 11.19 per cent against 5.61 per cent in corresponding period last year.

Meanwhile, shares of the bank closed at Rs 21.50 apiece, up 3.61 per cent, from previous close on BSE.

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