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Dragged down by higher slippages and provisioning, United Bank of India posted an almost flat growth in net profit in the fourth quarter of 2011-12.
Net profit grew by 4.2 per cent to about Rs 149 crore during the quarter ended March 31, compared with Rs 143 crore in the same period last year.
Net interest income grew by 7.7 per cent to Rs 619.14 crore.
According to Mr Bhaskar Sen, Chairman and Managing Director, the banks' profits took a hit on account of bad loans from sectors such as aviation, iron and steel, power and infrastructure.
The bank restructured loans worth Rs 469 crore to Air India in the last quarter. This apart, the bank has already classified Rs 314 crore loan to Kingfisher airlines as non-performing asset (NPA).
The percentage of gross NPA to advances increased to 3.41 per cent (2.51 per cent), while net NPA increased to 1.72 per cent (1.42 per cent).
The net interest margin fell to 3 per cent (3.13 per cent). The bank's capital adequacy ratio stood at 12.69 per cent as on March 31, 2012.
United Bank recorded total slippages of Rs 590 crore (Rs 334 crore).
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