New Delhi: Public sector United Bank of India (UBI) has reported a net loss of Rs637.53 crore during third quarter ended December 2017 on dip in investment income and a substantial rise in non performing assets (NPA) provisioning.

During same period of previous fiscal, the bank had registered a net profit of 4.10 crore. “Owing to a drop in trading profit (nearly 375 crore), growth in depreciation on investments (428 per cent) on account on unfavourable market conditions and spike in NPA provisioning by about 95 per cent ( 470 crore) during the period, the overall profitability has been adversely affected," the bank said in a statement.

Total income of the bank also fell to Rs2,483.01 crore during the October-December period of 2017-18 from Rs3,086.06 crore in the same period of 2016-17. Net interest income was down for the quarter at Rs347.94 crore, as against Rs360.98 crore.

Asset quality of the bank worsened with gross NPAs hitting 20.10% (Rs13,720.69 crore) of the gross advances as on 31 December 2017 against 15.98% (Rs10,845.31 crore). Net NPAs or bad loans too spiked to 11.96% (Rs7,365.14 crore) from 10.62% (Rs6,729.89 crore).

A higher NPA ratio required the bank to keep aside Rs964.07 crore as provision for the quarter, against Rs494.52 crore it has kept aside for year ago third quarter. Among others, the board of directors of the bank approved the United Bank of India-Employee Stock Purchase Scheme 2018 (UBI-ESPS 2018).

The Kolkata-headquartered United Bank of India said it has provided Rs167.44 crore for bad loans under insolvency process during this quarter against seven accounts. In all, it has to make Rs394.13 crore of additional provisioning, of which Rs262.75 crore is to be provided for during 2017-18.

Bank’s total deposits remained almost flat at Rs12,5579 crore, however, savings deposits increased by Rs220 crore from a year ago. Advances were up at Rs68,250 crore in third quarter this fiscal from Rs67,866 crore.

The advance portfolio has expanded by about Rs384 crore mainly due to growth in MSME advance by 17.70% and growth in housing loan and car loan segment by 23.63% and 31.31%, respectively. Stock of United Bank of India closed 0.66% up at Rs15.25 on BSE.