United Bank of India slips into red with Rs 211 crore net loss in first quarter | business-news

State-owned United Bank of India (UBI) on Saturday reported a net loss of Rs 211.46 crore during the first quarter ended June, on rise in Non-Performing Assets (NPAs) and higher provisioning.

The bank had registered a net profit of Rs 38.32 crore in the April-June quarter of previous fiscal.

Total income of the bank during the reported quarter was marginally up at Rs 2,852.61 crore as against Rs 2,819.37 crore year ago, the bank said in a regulatory filing.

Bank’s bad loan proportion rose substantially as gross NPAs rose to 17.17% of the gross advances by end June 2017 from 14.29 per cent as on June 30, 2016.

Value wise, it stood at Rs 12,164.90 crore against Rs 10,116.13 crore during the two periods compared.

Net NPA proportion hit 11.10% of net advances by end of first quarter of this fiscal (Rs 7,269.66 crore) as against 9.85% of net loans by June 2016 (Rs 6,579.28 crore).

The provisions to cover bad loans and contingencies increased to Rs 758.35 crore for the first quarter of 2017-18, from Rs 275.26 crore a year ago.

The Kolkata-headquartered lender said its total deposits increased by 7.26% to Rs 1,25,305 crore from Rs 1,16,820 crore in the year-ago period.