State-owned United Bank of India today reported a 20.75 per cent dip in net profit at Rs 52.22 crore on account of higher provisioning.
The city-based lender had posted a net profit of Rs 65.89 crore in the first quarter a year ago.
Total income also declined to Rs 2,896.74 crore from Rs 3,004.25 crore in the year-ago period, the bank said in a statement.
However, the net interest income witnessed an increase of 5.34 per cent to Rs 628.31 crore as against Rs 596.45 crore in the same period a year ago.
Bank MD and CEO, P Srinivas said the fall in the net profit was due to lowering of interest rates and higher provisioning.
Total provisions and contingencies rose to Rs 526.03 crore against Rs 508.3 crore in the same period of the previous fiscal. However, provision against bad loans came down to Rs 175.85 crore as compared to Rs 224.79 crore.
Gross non-performing assets (NPAs) as a percentage of total advances decreased to 9.57 per cent from 10.49 per cent.
During the quarter, net NPAs also came down to 6.30 per cent from 7.23 per cent in the first quarter of the previous fiscal.
Operating profit of the bank during the quarter rose to Rs 579 crore against Rs 508 crore in the same period a year ago.
Gross NPA in absolute terms came down to Rs 6,533 crore from Rs 7,097 crore in the first quarter of the last fiscal. At the same time, net NPA rose to Rs 4,091 crore from Rs 4,667 crore in the June quarter of the last fiscal.
The bank's net interest margin was 2.20 per cent at the end of the first quarter.
The bank's capital adequacy ratio was at 11.07 as per Basel II norms and 10.02 per cent as per Basel III norms at the end of June 30.
Net interest margin (NIM) improved to 2.20 per cent during the quarter from 2.09 per cent in the previous similar period, Srinivas said.
