UBI achieves Rs 105 crore 1st quarter profit

first_imgKolkata/ New DelHI: State-owned United Bank of India (UBI) clocked a net profit of Rs 105 crore in the first quarter of current financial year against a loss of Rs 389 crore in the previous similar period. Net interest margin (NIM) of the bank during the first quarter increased to 2.83 per cent as compared to 2.36 per cent in the same period previous fiscal. Net interest income for the quarter rose to Rs 727.47 crore from Rs 545.30 crore year earlier, United Bank of India said in a regulatory filing. Also Read – Thermal coal import may surpass 200 MT this fiscalTotal income in the first quarter rose to Rs 3,003.13 crore from Rs 2,549.71 crore in the year-ago quarter, it said. During the quarter, the bank’s interest income increased to Rs 2,374.39 crore from Rs 2,155.02 crore while income from other sources jumped to Rs 628.74 crore from Rs 394.69 crore in the year-ago quarter. UBI managing director and chief executive officer Ashok Kumar Pradhan said that “the worst is behind us”. He told reporters here on Tuesday that profits would be there in the subsequent quarters and the bank would access the capital markets to raise funds either in Q3 or Q4 of the current financial. Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boost”The board approval had already been taken,” he said. Pradhan said that financial parameters like net interest margin and cost-to-income ratio showed improved performance. “The parameters which determine banking performance would continue to improve and we expect to come out of the RBI-imposed prompt corrective action by September this fiscal”. Total business stood at Rs 2.05 lakh crore with deposits at Rs 1.32 lakh crore and advances Rs 73,249 crore. Pradhan said that bank’s target reduction in gross NPA and net NPA by the end of the current fiscal was eight to nine per cent and four to five per cent respectively. He said in the first quarter, fresh NPAs accrued to the bank was Rs 407 crore as against Rs 547 crore in the same period previous fiscal. The Kolkata-headquartered bank made a net profit of Rs 95 crore in the fourth quarter of 2018-19 after seven quarters of consecutive losses.last_img read more