United Bank of India, which has been reporting consecutive loss for the past seven quarters, made a turnaround in the fourth quarter of FY19. The bank registered a net profit of ₹95 crore for the quarter ended March 31, 2019, compared to a net loss of ₹261 crore in the same period last year.

The rise in net profit came despite a 22 per cent increase in provisioning to ₹1,688 crore (₹1,385 crore) during the period under review. Operating profit rose by over 300 per cent to ₹540 crore for the period under review, compared with ₹133 crore in the same period last year.

Net interest income grew by 18 per cent to ₹606 crore (₹514 crore), while non-interest income rose by 64 per cent to ₹735 crore (₹448 crore).

For the year ended March 31, 2019, losses widened to ₹2,316 crore, compared to ₹1,454 crore during the year-ago period. The bank is still under the Prompt Corrective Action (PCA) framework of Reserve Bank of India.

United Bank of India reported an improvement in asset quality during the quarter under review. Gross non-performing assets, as a percentage of total advances, decreased to 16.48 per cent (24.10 per cent), while net NPA reduced to 8.67 per cent (16.49 per cent).

Provision coverage ratio improved to 72.94 per cent (53.48 per cent).

United Bank of India is looking to raise around ₹1,500 crore by way of qualified institutional placement, public issue, or rights issue during this fiscal. The capital-raising would be done in one or more tranches.

In a notification to the stock exchanges on Monday, the bank said it has received the board’s approval for raising capital. The fund-raising would be subject to approval of shareholders and other statutory authorities.

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