Kolkata, May 17 (IANS) State-run United Bank of India on Tuesday reported a net loss of Rs.413.04 crore for the quarter ended March 31, 2016 due to fall in net interest income and high provisions to cover bad loans, as against a net profit of Rs.104.52 crore in the same quarter last year.
The public sector bank’s net interest income fell by 42 percent to Rs.405.45 crore in the quarter under review as compared to Rs.711 crore in the corresponding period last year, and operating profit stood at Rs.245.32 crore as against Rs 791.93 crore in the year-ago quarter.
The gross non-performing asset (NPA) was Rs.9,471 crore or 13.26 percent largely on account of impact of asset quality review (AQR). The net NPA was Rs.6,111 crore or 9.04 percent as on March 31, 2016, the bank said in a BSE filing.
“The slippage increased sequentially due to economic slowdown and also during the quarter as a part of asset quality review…” it said.
The bank said that the total NPA recovery and upgradation for 2015-16 was Rs.2,093 crore with cash recovery of Rs.541.42 crore and reduction of the net NPA assets amounted to Rs.890.35 crore through cash recovery and upgradation.
During January-March quarter, the bank’s interest expended was Rs.1,973.40 crore due to increase of its deposit base by Rs.3,925 crore.
Provisions and contingencies of the bank for the quarter was at Rs.658.36 crore as compared to Rs.687.41 crore in the corresponding period last year.
“Provision against non performing loans and advances has gone up from Rs.100.19 crore as on March 2015 to Rs.925.15 crore as on March 2016,” the bank said.
The Kolkata-based public lendera¿s capital adequacy ratio was at 10.46 percent as per Basel II as on March 31, 2016.
The bank posted a net loss of Rs.281.95 crore in 2015-16 as against Rs.255.99 crore net profit in 2014-15.
It raised Rs.480 crore of equity capital by way of preferential allotment of equity in favour of the government, and issued and allotted 23, 24,45,520 equity shares of Rs.10 each for cash at an issue price of Rs.20.65 per share, including premium of Rs.10.65 per share to the government against the capital infusion of Rs.480 crore.