United Bank of India surged 5.91% to Rs 36.75 at 10:38 IST on BSE after net profit galloped 1405.35% to Rs 469.37 crore on 14.38% growth in total income to Rs 3073.78 crore in Q4 March 2014 over Q4 March 2013.
The Q4 result was announced after market hours on Monday, 5 May 2014.
Meanwhile, the S&P BSE Sensex was up 97.86 points or 0.44% at 22,542.98.
On BSE, so far 7.23 lakh shares were traded in the counter as against average daily volume of 1.57 lakh shares in the past two weeks.
The stock hit a high of Rs 38.10 and a low of Rs 36.65 so far during the day.
United Bank of India's ratio of gross non-performing assets (NPAs) to gross advances stood at 10.47% as on 31 March 2014 as against 10.82% as on 31 December 2013 and 4.25% as on 31 March 2013. The ratio of net NPAs to net advances stood at 7.18% as on 31 March 2014 as against 7.44% as on 31 December 2013 and 2.87% as on 31 March 2013.
The bank's provisions and contingencies declined 64.85% to Rs 266.70 crore in Q4 March 2014 over Q4 March 2013. Provision coverage ratio stood at 52.25% as on 31 March 2014.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 9.81% as on 31 March 2014 as against 9.01% as on 31 December 2013.
United Bank of India reported a net loss of Rs 1213.45 crore in the year ended 31 March 2014 (FY 2014) compared to net profit of Rs 391.90 crore in the year ended 31 March 2013 (FY 2013). Total income rose 14.42% to Rs 11806.16 crore in FY 2014 over FY 2013.
In terms of the provisions of Circular dated 9 February 2011 issued by RBI on reopening of Pension Option to employees of Public Sector Banks and enhancement in Gratuity Limits, Rs 447.30 crore is being amortised over a period of 5 years with effect from financial year 2010-11. Accordingly, an amount of Rs 22.37 crore for the quarter ended 31 March 2014 (Rs 89.46 crore for the whole year) has been charged to profit & loss account. The unamortized liability as at 31 March 2014 stands at Rs 89.46 crore, United Bank of India said.
Pursuant to Reserve Bank of India (RBI)'s Circular dated 7 February 2014, the bank has utilized 33% of its countercyclical/floating provisions held as on 31 March 2013. As per the said RBI Circular, an amount of Rs 51.97 crore out of floating provision of Rs 157.48 crore held as at 31 March 2013 has been utilized for making specific provisions for non-performing assets, as per the policy approved by the Board, United Bank of India said.
The Government of India (GoI) holds 88% stake in United Bank of India (as per the shareholding pattern as on 31 March 2014).
Powered by Capital Market - Live News
