United Bank of India rallies 10% as net profit soars over 15 times

NEW DELHI: United Bank of India rallied as much as 9.79 per cent in trade on Tuesday after the beleaguered bank scripted a turnaround in the fourth quarter of 2013-14 by reporting an over 15 times jump in net profit to Rs 469 crore on the back of cash recovery and upgradation of accounts.

At 09:20 a.m.; United Bank of India was trading 8.2 per cent higher at Rs 37.55. It hit a low of Rs 36.75 and a high of Rs 38.10 in trade today.

The city-based lender, which suffered a loss in the quarter-ended December 2013, made cash recovery of Rs 645 crore in the March, 2014 quarter as compared to Rs 130 crore in the corresponding previous quarter.

In the January-March 2013 quarter, the bank had posted a Rs 31 crore profit.

Announcing the results after the bank's board meeting here today, executive director of UBI Sanjay Arya said that the turnaround had been due to cash recovery and upgradation of accounts.

The full year 2013-14, the bank's net loss stood at Rs 1,213 crore. Worried over capital adequacy concerns at the end of December, 2013, the bank at the behest of RBI slammed brakes on corporate advances, said the PTI report quoting Arya.