United Bank of India - Q4FY13 Result Review - Angel Broking

United Bank's 4QFY2013 numbers disappointed on operating as well as on asset quality front. On back of 6.6% yoy increase in operating expense, operating profit for bank increased by 6.9% yoy to Rs. 511cr. NII de-grew 8.9% yoy to Rs. 564cr. On asset quality front, gross and net NPA's increased by 2.1% and 39.1% respectively sequentially. Hence, higher provisioning by 174.4% yoy at Rs. 759cr and tax write back of Rs. 279cr, as against tax expense of Rs. 22cr in 4QFY13, led the bank to report PAT de-growth of 79.1% yoy at Rs. 31cr.

The stock is currently under review.

Source : Equity Bulls

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