State-run United Bank of India on Thursday reported a net profit of Rs 73.56 crore for the quarter ended March 31, compared with a net loss of Rs 413.04 crore for the same period a year ago.
The lender’s total income in the quarter under review fell by close to 3 per cent year-on-year (y-o-y) to Rs 2,672.88 crore from Rs 2,752.35 crore in the year-ago period, but its net interest income (NII) during the period grew by 23.8 per cent y-o-y at Rs 501.94 crore.
The city-headquartered bank’s tax write-back nearly doubled to Rs 1,016.88 crore for the March quarter of the last fiscal from Rs 515.06 crore for the corresponding period previous fiscal, the bank said in a regulatory filing.
In the three months ended March, the bank’s gross non-performing assets (NPAs) in absolute term rose 15.64 per cent y-o-y to Rs 10,951.99 crore from Rs 9,471.01 crore for the corresponding period in the previous fiscal.
Gross NPA as a percentage of total loans rose to 15.53 per cent in the quarter from 13.26 per cent during the same period previous fiscal.
Net NPA ratio stood at 10.02 per cent as against 9.04 per cent for the year-ago period.
The lender also said cash recovery from NPA aggregated to Rs 488.37 crore for the year ended March 2017 and reduction of NPAs were to the tune of Rs 2,052.10 crore.
During the fourth quarter of 2016-17, provisions and contingencies rose 31.25 per cent y-o-y at Rs 1,059.36 crore compared with Rs 807.13 crore in the corresponding quarter of the previous fiscal.
Under Basel III, the bank’s capital adequacy ratio stood at 11.14 per cent with the Tier-1 capital at 8.94 per cent as on March 31 and its capital adequacy ratio as per Basel II was at 11.68 per cent as on March 31.
The lender’s board on Thursday approved raising of equity capital not exceeding of Rs 1,000 crore in one or more tranches during any financial year.