United Bank of India posts Rs 124-cr net profit in September quarter

United Bank of India | Photo: Wikimedia Commons
Kolkata-based United Bank of India has posted a net profit of Rs 124 crore in the July-September quarter of 2019-20, against a net loss of Rs 883 crore in the same period last financial year.

This was the third straight quarter in which the bank had posted profits, led mainly by high interest and non-interest income, better recoveries and treasury gains, said United Bank Managing Director & Chief Executive Officer Ashok Kumar Pradhan. The bank could make a cash recovery of about Rs 520 crore in the quarter. So far this financial year, the bank has made cash recoveries to the tune of about Rs 1,100 crore.

However, the bank saw fresh slippages of close to Rs 1,000 crore in the September quarter, with corporate account slippages standing at around Rs 800 crore. New slippages include accounts of Reliance Commercial Finance, Reliance Home Finance, and Chenani Nashri Tunnelway Limited (which is a wholly owned subsidiary of IL&FS), Transportation Networks Limited (ITNL) and HKR Roadways.

The net interest income of the bank grew by about 74 per cent in the quarter to stand at Rs 773 crore.

The proportion of gross non-performing assets (NPA) in the bank’s total loans stood at 15.51 per cent, against 22.69 per cent in the same period last financial year. The proportion of net NPAs stood at 7.88 per cent, against 14.36 per cent in the same period last financial year.

The bank also saw a capital infusion of about Rs 1,666 crore last financial year.

Under the mega merger plan announced by Union Finance Minister Nirmala Sitharaman, Punjab National Bank, Oriental Bank of Commerce and United Bank of India are to combine and form the nation's second-largest lender.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel