United Bank of India turns around with Rs 469 crore net profit

KOLKATA: The troubled state-run United Bank of India has announced a dramatic turnaround in its fortunes as three months of focused recovery of bad loans and adjustment of software issues has helped it post a Rs 469 crore net profit after recording the worst earnings in the December quarter.

UBI's net profit was 15 times higher than Rs 31.18 crore in the year ago period while the bank reported a Rs 1238 crore loss in the December quarter on account of three-fold rise in bad loans to Rs 8546 crore. Its operating profit for the quarter under review was Rs 543 crore, compared to last time's Rs 511 crore.

UBI has reduced bad loans to Rs 7118 crore backed by healthy recovery and upgradation of accounts between January and March and its gross non performing assets ratio improved to 10.47% at the end of March from 10.82% three months back.