Q1FY20 review: United Bank of India posts net profit of Rs 105 cr
This a marked improvement over the corresponding quarter of the financial year 2018-19 when the United Bank of India posted a net loss of Rs 388.68 crore
July 30, 2019
United Bank of India posted a net profit of Rs 105 crore for the June quarter of financial year 2019-20 as it registered a rise in core income and a fall in non-performing assets (NPAs). The state-run lender has recorded a net loss of Rs 388.68 crore in the corresponding quarter of the previous financial year.
Total income at Rs 3,000 cr
In a regulatory filing, the bank said on Tuesday that its total income rose to Rs 3,003.13 crores in the first quarter of FY2019-20 from Rs 2,549.71 crores in the corresponding quarter of the previous financial year.
In Q1FY2019-20, the bank’s interest income rose to Rs 2,374.39 crores, up from Rs 2,155.02 crores the bank posted in the corresponding quarter in FY2018-19. Income from other sources increased to Rs 628.74 crore from Rs 394.69 crore in the year-ago quarter.
Net interest margin increased by 47 basis points
The bank’s Net interest margin (NIM) increased by 47 basis points to 2.83 percent in the first quarter of FY2019-20 from 2.36 percent in the year-ago period. Net interest income for the quarter rose to Rs 727.47 crore from Rs 545.30 crore year earlier.
The bank also registered a substantial decline in gross non-performing assets (NPAs) as the figure fell to 15.89 percent of gross advances in the June quarter as opposed to 22.73 percent in the year-ago period.
Net NPAs, on the other hand, halved to 8.19 percent from 15.17 percent.
In value terms, gross NPA stood at Rs 11,639.74 crore as opposed to Rs 15,169.21 crores in the corresponding period of the previous financial year. Net NPAs, on the other hand, were at Rs 5,496.09 crore, down from Rs 9,232.61 crore.
The provisioning and contingencies for the June quarter declined to Rs 571.65 crore from Rs 856.30 crore in the same period of 2018-19. “Provision for non-performing loans in June quarter declined by 40.60 percent on the year. Stressed assets position showed continuous improvement,” United Bank of India said.