Higher provisioning and lower net interest income (NII) pushed down the net profit of United Bank of India (UBI) by 30% (YoY) to Rs.43 crore. NII or the core income which the bank earns by giving loans was down 41% at Rs.376 crore though it was non-interest income which helped the shoring up – it was up 77% at Rs.661 crore. The net profit would have fallen even more but for the 27% drop in employee cost ad more significantly, the tax write back of Rs.8 crore. This fall in NII is reflected in the lower loans growth – total advances given in Q2 dropped 3 while deposits showed a 6% increase.

In terms of asset quality, it deteriorated during the quarter, Gross NPA rose to 16.26% from 14.29% (QoQ) and Net NPA too showed a rise from 9.85% to 11.19%. Provisioning has also risen – up 46% (QoQ) and YoY, it has risen by a whopping 146% at Rs.275 crore.