 "United Bank of India to raise Rs 1,000 cr through securities")
State-run lender United Bank of India posted a net loss of Rs 413.04 crore for the quarter ended March 31, 2016. Higher non-performing assets (NPAs) and provisioning pulled the Kolkata-based lender into the red. The bank had posted a profit of Rs 105.52 crore in the corresponding period last year. In the October-December quarter of FY16, the bank had posted a net profit of Rs 17 crore.
The bank's NPAs rose sharply in the last quarter. Net NPA in January-March 2016 was 9.04 per cent; it was 6.22 per cent in the previous quarter. Gross NPAs were 13.26 per cent, against 9.49 per cent in the corresponding quarter of FY15.
The bank said higher NPAs were largely on account of the asset quality review advised by RBI, along with economic slowdown during the quarter.
Provisions against NPAs went up from about Rs 100 crore as on March 31, 2015, to about Rs 925 crore as on March 31, 2016. Total provisions (other than tax) and contingencies of the bank in the March quarter of FY16 stood at Rs 1,173 crore, against Rs 676 crore in the corresponding period in FY15.
The gross NPA of the bank in the last quarter stood at Rs 9,471 crore, against Rs 6,553 crore in the corresponding period of FY15; net NPA stood at about Rs 6,111 crore, against nearly Rs 4,081 crore in the corresponding quarter of FY15.
Net interest income in the quarter stood at Rs 405 crore, against Rs 711 crore in the corresponding quarter of FY15, a fall of about 43 per cent.
The bank's capital adequacy ratio stood at 10.08 per cent, according to Basel-III norms, as on March 31, 2016.
The total NPA recovery and upgradation for FY16 was Rs 2,093 crore, with a cash recovery of Rs 541 crore.
