Bank of India

Like the rest in the clan of PSU bank on a clean-up mode, United Bank of India too posted a very dismal set of numbers for Q4FY16. The Bank posted a net loss of Rs.413 crore v/s net profit of Rs.104 crore in previous Q4. Total income dropped 13% at Rs.2752 crore (YoY). Its total provision for contingencies rose 73% to Rs.1173 crore while provision coverage was at 53.36%. What is shocking is that its provision against contingencies showed a sharp rise from Rs.100 crore to Rs.925 crore (YoY).

Asset quality has really taken a hit. Gross NPA was at 13.26% v/s 9.57% in Q3 and 9.49% in previous Q4. Net NPA too showed a sharp rise – up at 9.04% from 5.91% (QoQ) v/s 6.22% (YoY).

NII for the quarter showed a sharp drop of 43% at Rs.405 crore (YoY).