Public sector United Bank of India today reported 59 per cent decline in net profit to Rs 17 crore for the December quarter despite decrease in bad loans. The bank had posted a net profit of Rs 42 crore in the third quarter of the previous fiscal.
The total income declined marginally to Rs 2,828 crore during the quarter under review from Rs 2,935 crore in the same quarter last fiscal.
Decline in operating profit as well as net profit is due to reduced interest income and trading profit, United Bank of India said in a statement.
The bank's Net Interest Income (NII) declined by 2 per cent to Rs 608 crore as against Rs 622 crore in the corresponding quarter of the previous fiscal, it said.
Operating profit of the bank slipped to Rs 470 crore compared with Rs 603 crore in the year-ago period.
As far as bank's asset quality is concerned, gross NPAs as a percentage of total advances declined to 9.57 per cent from 12.03 per cent in the same quarter a year ago.
Net NPAs declined to 5.91 per cent from 8.50 per cent at the end of December 2014, it said.
Gross NPA in absolute terms declined to Rs 6,722 crore as compared with Rs 7,809 crore in the year-ago period.
As a result, total provisions, excluding for income tax, came down to Rs 458 crore during the third quarter of the current fiscal as against Rs 520 crore in the year-ago period.
The fresh slippage during the quarter was Rs 1,160 crore as against Rs 1,622 crore in same period a year ago.
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