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United Bank of India Q2 net profit of Rs 124 crore as bad loans fall substantially

The Kolkata-headquartered bank had posted a net loss of Rs 883.17 crore in the July-September period of 2018-19. Sequentially, there was a net profit of Rs 105 crore in the first quarter ended June this year.

United Bank of India Q2 net profit of Rs 124 crore as bad loans fall substantially

United Bank of India

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Published : Oct 30, 2019, 5:27 PM IST

New Delhi: State-owned United Bank of India reported a net profit of Rs 123.88 crore in the second quarter ended September 30, on the back of substantially lower dud loans, leading to lower provisioning requirement.

The Kolkata-headquartered bank had posted a net loss of Rs 883.17 crore in the July-September period of 2018-19.

Sequentially, there was a net profit of Rs 105 crore in the first quarter ended June this year.

The lender's total income rose to Rs 3,013.74 crore in the September 2019 quarter, compared with Rs 2,600.47 crore earned in the corresponding period of the previous financial year, the bank said in a regulatory filing on Wednesday.

The bank brought down its net non-performing assets (NPAs) to 7.88 per cent as on September 30, from 14.36 per cent by the end of September 2018.

Gross NPAs or bad loans reduced to 15.51 per cent of the gross advances by the end of September, compared with 22.69 per cent in the year-ago period.

In absolute terms, the net NPAs were Rs 5,380.93 crore against Rs 8,658.10 crore, while the gross NPAs were Rs 11,544.19 crore from Rs 15,163.28 crore.

Thus, the bank's provisioning and contingencies requirement for July-September 2019 came down to Rs 436.42 crore from Rs 1,481.24 crore parked aside for the year-ago period.

The lender said it made additional provision of Rs 46.75 crore in respect of eligible NCLT accounts by the end of the second quarter.

"Actual provision as on September 30, 2019, for NCLT (list 1 and 2) accounts stand at Rs 3,322.77 crore instead of Rs 3,276.01 crore as per IRAC (income recognition and asset classification) norms," it added.

Provision coverage ratio as on September 30 stood at 74.89 per cent, said United Bank of India.

"Pursuant to the government's letter dated August 30, 2019 on amalgamation of PSBs (public sector banks), the board of directors of the bank at its meeting held on September 18, 2019, had considered and accorded its in-principle approval for amalgamation of United Bank of India, Oriental Bank of Commerce and Punjab National Bank and commencement of the amalgamation process, subject to all applicable approvals," it added.

Shares of United Bank of India closed 19.95 per cent higher at Rs 8.90 apiece on the BSE.

Read more: Graphite India Q2 net profit dips 83%

New Delhi: State-owned United Bank of India reported a net profit of Rs 123.88 crore in the second quarter ended September 30, on the back of substantially lower dud loans, leading to lower provisioning requirement.

The Kolkata-headquartered bank had posted a net loss of Rs 883.17 crore in the July-September period of 2018-19.

Sequentially, there was a net profit of Rs 105 crore in the first quarter ended June this year.

The lender's total income rose to Rs 3,013.74 crore in the September 2019 quarter, compared with Rs 2,600.47 crore earned in the corresponding period of the previous financial year, the bank said in a regulatory filing on Wednesday.

The bank brought down its net non-performing assets (NPAs) to 7.88 per cent as on September 30, from 14.36 per cent by the end of September 2018.

Gross NPAs or bad loans reduced to 15.51 per cent of the gross advances by the end of September, compared with 22.69 per cent in the year-ago period.

In absolute terms, the net NPAs were Rs 5,380.93 crore against Rs 8,658.10 crore, while the gross NPAs were Rs 11,544.19 crore from Rs 15,163.28 crore.

Thus, the bank's provisioning and contingencies requirement for July-September 2019 came down to Rs 436.42 crore from Rs 1,481.24 crore parked aside for the year-ago period.

The lender said it made additional provision of Rs 46.75 crore in respect of eligible NCLT accounts by the end of the second quarter.

"Actual provision as on September 30, 2019, for NCLT (list 1 and 2) accounts stand at Rs 3,322.77 crore instead of Rs 3,276.01 crore as per IRAC (income recognition and asset classification) norms," it added.

Provision coverage ratio as on September 30 stood at 74.89 per cent, said United Bank of India.

"Pursuant to the government's letter dated August 30, 2019 on amalgamation of PSBs (public sector banks), the board of directors of the bank at its meeting held on September 18, 2019, had considered and accorded its in-principle approval for amalgamation of United Bank of India, Oriental Bank of Commerce and Punjab National Bank and commencement of the amalgamation process, subject to all applicable approvals," it added.

Shares of United Bank of India closed 19.95 per cent higher at Rs 8.90 apiece on the BSE.

Read more: Graphite India Q2 net profit dips 83%

Intro:Body:

New Delhi, Oct 30 (PTI) Women are 'recklessly cautious' when it comes to saving as nearly 58 per cent prefer to park their money in either fixed deposits, public provident fund (PPF) or letting it lie in their savings account, according to a survey.

   Besides, 6 per cent respondents said they preferred to buy gold, while 15 per cent of them picked mutual funds to invest their excess income, the survey by Scripbox, which provides online financial services, said.

   Scripbox, which undertook this survey in the first two weeks of October 2019 on leading Facebook Communities, received inputs from 400 women. Of these, 54 per cent were millennials, 56 per cent were non-millennials.

   Three fourths of millennial women overwhelmingly favour saving, the survey noted.

   Setting aside money for vacations emerged as the goal for one in six millennials.

   In contrast, half of non-millennials pursue investment goals such as building up a retirement corpus or setting aside funds for their children's education, according to the survey.

   While tax saving schemes such as PPF and LIC, and fixed deposits are important for this age group too (33 per cent of respondents), 26 per cent of the respondents clearly realised the role that mutual funds can play in helping them attain their long term financial goals, it added.

   Besides, the survey said nearly 44 per cent of the women said easy access to their money is important to them when they save or invest their hard earned money.

   "Saving and investing are two sides of the same coin and are used interchangeably. However, there's a big difference in what each delivers. Savings is money set aside for emergencies which offer minimal or no rate of return.

   "Investments, on the other hand, are a systematic approach to wealth

creation. Investing in market-linked financial instruments can actively help to beat inflation, grow your net worth over the years, and prepare you for what lies ahead – college for the kids, taking care of yourself in retirement," Scripbox CEO Ashok Kumar said.

   As per the survey, women's risk averse behaviour to money qualifies this finding as creating an emergency fund topped their agenda with nearly 36 per cent picking this, followed by setting aside money for their children's education (28 per cent) and building a retirement corpus (26 per cent).

   Nearly 25 per cent of women polled admitted to not having a financial goal in mind.

   About 28 per cent of the women said they were confident of their approach to financial planning and meeting their life goals, while 15 per cent preferred leaving financial planning matters in the hands of one of their family members.

   However, 44 per cent of women polled said they would welcome additional help in financial planning.

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