United Bank of India (UBI) reported a 21 per cent dip in its net profit during the first quarter of the current fiscal even as its slippages showed a decline.
Bank Managing Director and Chief Executive Officer P. Srinivas said that despite a reduction in base rate by 35 basis points, net interest income had increased by 5.3 per cent over a year to touch Rs.628.3 crores.
“Asset quality was now stable,” Mr. Srinivas said at a press meet adding recoveries were improving. Provision against non- performing loans and advances had come down to Rs.175.90 crore from Rs.224.79 crore. However, the bank had to provide Rs.40.7 crores against depreciation on its investments for mark to market loss. “The bank is still under certain restrictions,” the CEO said.
Responding to queries about certain accounts such as REI Agro, Kingfisher and Electrosteel Steels, he said that while full provision had been made in the first case, which turned out to be a fraud, the second was being pursued legally. In case of Electrosteel Steels, the bank, which is part of the Joint Lenders Forum seemed to be hopeful of finding an alternate promoter by September. “By September things will reach their logical conclusion” he said, declining to elaborate on individual accounts.
