UBI eyes lower NPA
The bank recorded gross non performing assets of Rs 11,457 crore for the quarter ended December 31, 2019
- Published 7.02.20, 12:35 AM
- Updated 7.02.20, 12:35 AM
- a min read
Two city-based banks hope to reduce their non-performing assets for the quarter ended March 31, 2020.
United Bank of India, which is set to merge with Punjab National Bank and Oriental Bank of Commerce, recorded gross non performing assets of Rs 11,457 crore for the quarter ended December 31, 2019.
“While the bank has improved the financial performance, there is still some work to be done on NPA management. I expect the gross NPA to come down to Rs 8,500 crore by March,” said Ashok Kumar Pradhan, managing director and CEO of UBI.
Even though there was a decline in gross NPAs during the quarter, the bank’s NPA allotment went up over the September quarter as it made provisions for exposure to DHFL and some agricultural advances.
Pradhan said there was a need to improve the credit repayment culture, while the waiver of agricultural credit should be discouraged.
The bank has posted a net profit of Rs 114 crore for the quarter against a loss of Rs 1,139 crore in the corresponding quarter of previous year.
On the merger process, the bank is now awaiting a formal communication from the government.
Uco health improves
Uco Bank has seen its net loss come down to Rs 960.17 crore during the third quarter from Rs 998.74 crore in the corresponding quarter of the previous year.
The gross NPA of the bank at the end of the quarter was Rs 22,139.65 crore against Rs 31,121.79 crore in the corresponding quarter of the previous year.
The bank’s managing director and CEO, A.K. Goel, said on Thursday that a combination of high net interest income, high operating profit and low provisions have helped to improve the bottomline of the bank.