United Bank of India, a Kolkata-based lender, Monday said fiscal first quarter net profit slipped 21% on higher provisions. Shares of the lender climbed on improving asset quality.
The lender's net profit fell to Rs 522.2 million in the three months ended Jun 30 compared to Rs 658.9 million in the corresponding period a year ago, United Bank of India said in a statement to the stock exchanges today.
Net interest income rose to Rs 6.29 billion in the Apr-Jun quarter compared to Rs 5.9 billion in the same period a year ago.
Provisions of the lender jumped 16% to Rs 4.93 billion in the first quarter.
The lender's gross non performing asset climbed to 9.57% in the Apr-Jun compared to 10.4% from a year ago period.
Bad loans after provisions rose to 6.3% in the first quarter compared to 7.23% from a year ago period.
Other income of the lender fell 10% to Rs 3.62 billion in the Apr-Jun period.
The lender's revenue from treasury fell 6.5% to Rs 9.48 billion while revenues from retail banking slipped 11% to Rs 5.17 billion in the first quarter.
Wholesale banking revenues of the lender fell 2% to Rs 13.08 billion in the Apr-Jun quarter.
United Bank of India jumped 4.27% to Rs 25.65 at the close of trading on the Mumbai stock exchange. The 30-share Sensex index rose 0.26% to 28,187.06.
