United Bank of India on Thursday reported a net profit of Rs 113.56 crore for December quarter 2019-20 as provisions for bad loans more than halved.
There was a net loss of Rs 1,139.25 crore in the year-ago period.
Total income in the quarter under review increased to Rs 2,971.38 crore from Rs 2,846.23 crore in the same period of 2018-19, United Bank of India said in a regulatory filing.
Operating profit was up 66.45 per cent at Rs 636.92 crore as against Rs 382.61 crore in the year-ago same period.
Net interest margin increased to 2.98 per cent during the quarter, the bank said, adding it showed an improvement of 98 basis points over 2 per cent in the third quarter of 2018-19.
Net interest income was higher at Rs 819.43 crore in the quarter under review from Rs 380.04 crore a year ago.
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Provision for non-performing assets (NPAs) declined 52.24 per cent in third quarter of 2019-20 to Rs 860.37 crore from Rs 1,801.51 crore a year ago.
Gross non-performing assets (NPAs) fell to 15.48 per cent of gross advances at the end of December 2019 from 21.27 per cent at the end of same period of the previous fiscal. Likewise, net NPA ratio stood at 8.56 per cent, down from 12.08 per cent.
Provision coverage ratio improved to 74.19 per cent as on December 31, 2019 against 65.23 per cent at December-end 2018-19, the bank said.
"The board of directors of the bank at its meeting held on September 18, 2019 has considered and accorded its in-principle approval for amalgamation of United Bank of India, Oriental Bank of Commerce and Punjab National Bank and commencement of the amalgamation process, subject to all applicable approvals," said the Kolkata-headquartered lender.
Further, it said Rs 44.86 crore has been additionally provided in respect of eligible NCLT (list 1 and 2) accounts as on December 31, 2019.
"Total provision as for NCLT (list 1 and 2) accounts stand at Rs 3,322.69 crore at end of December 2019," the bank said.
Among others, the lender informed that it charged to profit and loss account an amount of Rs 10.14 crore during the quarter against an account declared as fraud amounting to Rs 17.55 crore. Rs 7.41 crore has been deferred to subsequent quarters, it added.
Further, out of unamortised amount of Rs 16.88 crore up to quarter ended September 30, 2019, an amount of Rs 16.88 crore has also been charged to profit and loss account during this quarter.
Disclosing NPA divergence for 2018-19, the bank said the adjusted loss for the year widened to Rs 3,367.93 crore from Rs 2,315.93 crore reported earlier.
Bank's divergence in gross NPAs stood at Rs 1,712 crore as the bank reported it to at Rs 12,053.38 crore, while the RBI assessed it at Rs 13,765.38 crore.
The net NPA divergence was reported at Rs 95 crore and the divergence in provisioning came in at Rs 1,617 crore during 2018-19.
"The divergence in provision, after reviewing correct classification in KCC (Kisan Credit Card) accounts as done by audit and inspection department of bank and other accounts not being NPAs, worked out to Rs 1,563 crore (as against Rs 1,617 crore stated in ISE 2019)," the bank said.
It has made a provision of Rs 782 crore in this quarter and the balance amount carried forward for fourth quarter is Rs 781 crore.
The Bank's shares closed 2.95 per cent higher at Rs 8.73 per scrip on the BSE.