United Bank of India makes another quarterly loss at Rs 345 crore

Kolkata: State-run United Bank of India has reported another quarterly loss at Rs 345 crore with its gross non-performing assets ratio slipping further to 18.8% making it one of weakest banks in terms of asset quality.

It had reported Rs 212 crore loss in the first quarter to June while had Rs 44 crore net profit in the year ago period.

UBI's operating profit fell 35% at Rs 286 crore, showing that the stress in the banking sector is far from over. Its other income fell 23% at Rs 509 crore while net interest income remained flat at Rs 376 crore.

The bank's board approved the financial results Monday after the market hour. The bank's stock price fell 1.63% Monday to Rs 18.05 on BSE.

UBI's gross NPA was Rs 12893 crore at the end of September out of total advances of Rs 68562 crore, which remained flat year-on-year. This shows the

The Kolkata-based lender almost doubled its provisions at Rs 876 crore to take its provision coverage ratio to 57.4%. Provisions create a cushion against the default risk.

IDBI Bank has the poorest asset quality in the banking sector with one-fourth of its loans turning sticky after the September quarter.