United Bank hopes to make profit in Q4 of FY19
The United Bank India (UBI) has posted a net loss of Rs. 1139 crore in the current fiscal. The loss is due to higher provisioning. Some of the indicators like improvement of CASA deposit (49.49%), higher net interest margin (2%) and higher non-interest income (63%) show that the bank is on the recovery path. The bank has been able to generate an operating profit of Rs. 383 crore in the last December quarter. Housing loan has also grown by more than 12% which is a good indicator of the bank’s portfolio. The bank’s high quality liquid asset ratio to total asset is reportedly more than 20%. The bank is looking to channelise this excess liquidity into MSME, rated corporates and PSU companies.
SAIL posted Rs. 616 crore PAT in Q3
Steel Authority of India Limited (SAIL) posted Profit After Tax (PAT) of Rs. 616 crore in Q3 FY ’2019 which stood at Rs. 43 crore during the corresponding period last year. The company has managed to improve its performance over the previous quarter by more than 11% when it stood at Rs. 554 crore. SAIL recorded the best ever quarterly crude steel production of 4.3 Million Tonnes (MT), a 10% growth over CPLY which was 3.9MT in Q3 FY ’2018. The third quarter of this financial year also recorded the best ever quarterly saleable steel production at 3.8 MT, a 5% growth over Q3 FY’ 2018.
The UCO Bank has reduced its net loss in Q3
The Kolkata headquartered UCO Bank has reported a net loss of Rs. 998.74 crore for the quarter ending in December 2018. It was Rs. 1016.44 crore in the same quarter December in 2017. The operating profit of the bank has increased to Rs. 381.41 crore as compared to Rs. 368.95 crore in the same period of last year. Net Interest Income of the Bank has increased to Rs. 826.60 crore which represents a growth of 0.82%. Another improvement of the bank has been an enhancement of the CASA deposit. This has increased by 37.22%, as compared to 32.93 % of the corresponding period of last year.
One of the main reasons behind high gross NPA (Rs. 31121 crore) is problem of IL&FS, an NBFC. The bank has a big exposure in this NBFC. At the same time, Capital Adequacy Ratio (CAR) of the bank has improved and stood at 9.33% at the end of December quarters.
Allahabad Bank hopes to turn around by June
Allahabad Bank has been able to lower its loss to Rs. 733 crore for the quarter ended in December 2018. In the same period of last year, the net loss has been Rs. 1,264. Recently three PSU banks have been able to come out of PCA (prompt corrective action). Mallikarjuna Rao, MD and CEO,
Allahabad Bank said that the bank is expected to come out of PCA by June 2019.
Some of the positive sides of the bank in Q3 are – the domestic CASA deposit stood at Rs. 99781 crore i.e. 47.74%. And was claimed to be one of the highest in the industry, the retail credit grew by 26.11% as on December 31, 2018 YoY to Rs. 19599 crore up from Rs. 15540 crore as on December 31, 2017 and operating profit improved to Rs. 768.96 crore.
The bank is proactive in the recovery process, expecting resolution in 10 accounts referred in the NCLT and recover Rs. 2739 crore from these accounts. The bank expects Rs. 1,400 crore out of this after around 50% haircut of these 10 accounts. There are another 130 accounts in NCLT with a total exposure of Rs. 18,000 crore. The bank has a total exposure of about Rs. 1,245 crore to IL&FS. Out of that, about Rs. 300 crore in three accounts turned to NPA.