Comments
Kolkata-based United Bank of India reported a net loss of ₹413 crore for the fourth quarter-ended March 31. It had reported a profit of ₹104 crore in the year-ago-period.
Higher provisioning for stressed assets and provision against retirement benefits of employees dragged the profit down. Provisioning increased by 73 per cent to ₹1,173 crore (₹676 crore).
Net interest income fell 43 per cent to ₹405 crore, against ₹711 crore in the corresponding period last year. For the fiscal year, the bank reported a net loss of ₹282 crore and its net interest income stood at ₹2,281 crore.
Gross non-performing assets in FY16 increased nearly 45 per cent to ₹9,471 crore (₹6,553 crore), while gross NPA per cent stood at 13.26 (9.49 per cent).
Net NPAs during the year too rose to ₹6,111 crore, from ₹4,081 crore in FY15. In December, the Reserve Bank of India carried out an asset quality review (AQR) across the banking sector, following which banks were asked to recognise visibly stressed assets, classify them as NPAs and make adequate provisions over the third and fourth quarters of the fiscal.
The AQR and subsequent provisioning, apart from the economic slowdown, are the reasons for the increase in slippages, said a press release from United Bank.
Shares of United Bank closed at ₹19.20, up 3.23 per cent, on the BSE on Tuesday.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.