 "United Bank of India Q2 net profit falls 30% to Rs 43 crore")
Weighed down by bad debts, the net profit of Kolkata-based United Bank of India fell by around 30 per cent on a year-on-year basis, as the bank today posted a net profit of around Rs 43.53 crore in Q2 of FY17, against Rs 61.86 crore in the same period last year.
Gross non-performing assets (NPAs) of the bank stood at 16.26 per cent in the last quarter, against 8.90 per cent in the same period of FY16. The net NPA of the bank stood at 11.19 per cent in Q2 of FY17, against 5.61 per cent in Q2 of FY16.
In absolute terms, the gross NPA of the bank stood at about Rs 11134 crore in the last quarter, against about Rs 6112 crore in the same period of FY16, a rise of almost 82 per cent. The net NPA of the bank stood at around Rs 7185 crore in Q2 of FY17, against about Rs 3677 crore in Q2 of FY16, a rise of almost 95 per cent.
The slippages increased on account of economic slowdown, the bank said in a press release. For the half year ended September 2016, the cash recovery from NPA aggregated to Rs 186.24 crore, reduction in NPA were to the tune of Rs 502.42 crore.
The provisions (other than tax) and contingencies increased to around Rs 401 crore in Q2 of FY17, against around Rs 163 crore in the same period previous fiscal, a rise of around 146 per cent.
The net interest margin of the bank was 1.27 per cent at the end of last quarter.
