United Bank slips into red

The profitability of United Bank of India took a hit in the third quarter on account of a dip in trading income and rise in bad loan provisioning.

By A Staff Reporter
  • Published 13.02.18
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Calcutta: The profitability of United Bank of India took a hit in the third quarter on account of a dip in trading income and rise in bad loan provisioning.

The net loss of the city-based public sector bank for the quarter ended December 31, 2017, was Rs 637.53 crore compared with a profit of Rs 64.10 crore in the corresponding quarter a year ago.

Total income stood at Rs 2,483.01 crore compared with Rs 3,086.06 crore in the year-ago quarter.

The gross non-performing asset ratio of the bank during the quarter was 20.10 per cent against 15.98 per cent in the year-ago period.

"The interest expenditure during the quarter has reduced by 13.31 per cent year-on-year, while the interest income is down by only 11.77 per cent, keeping the spread on interest almost flat. However, owing to a drop in trading profit, growth in depreciation of investments on account of unfavourable market conditions and spike in NPA provisioning by about 95 per cent, the overall profitability has been adversely affected," the bank said in a statement.