United Bank of India improves asset quality, reports 41% rise in net profit

KOLKATA: United Bank of India (UBI) has managed to improve its sticky loan situation, helping it to report 41% rise in net profit for the September quarter at Rs 62 crore, while asset quality worsened for another Kolkata-based lender Uco Bank.

UBI’s net profit was Rs.62 crore against Rs 44 crore in the year-ago quarter. Operating Profit grew 13% at Rs 518 crore over Rs 459 crore.

The bank’s net interest income (NII) stood at Rs 639 crore for the period against Rs 561 crore in the corresponding quarter last year. The bank attributed the rise in NII primarily to efficient management of liabilities and improved management of the asset portfolio.

UBI’s asset quality improved with gross non performing assets falling to Rs 6112 crore from Rs.7075 a year back. The gross NPA ratio has fallen to 8.90 at the end of September from 10.78 a year back. Net NPA fell to 5.61% from 7.19 %.

UBI’s local rival Uco Bank, however saw its NPA ratio rising to 8.51% from 5.20% a year back. Uco’s net NPA ratio was at 5.15% compared with 15% a year back.
UBI said its slippages have shown a steep decline in the quarter under review to Rs 140 crore against Rs 801 crore a year back. Yet, it has provided more against NPA to Rs 275 crore in the quarter, rising from Rs 164.02 in the corresponding quarter last year.

UBI's capital adequacy ratio stood at 10.29% with the tier 1 capital at 7.45 % at the end of September.