United Bank of India, the public sector lender has asked the government for capital infusion of Rs 305 crore under the government's recapitalization scheme. Recently, bank had raised Tier II capital of Rs 100 crore by issuing non-convertible bonds. The bank's capital-adequacy ratio stood at 12.63% as on December 31, 2011 and its Tier I capital was at 8.37%.
The bank has posted a contraction of 66% in its net profit of Rs 197.00 crore for the quarter ended December 31, 2011 as compared to Rs 579.57 crore for the quarter ended December 31, 2010. The bank’s total income has increased by 27.14% to Rs 5966.82 crore for the quarter ended December 31, 2011 as compared to Rs 4693.06 crore for the corresponding quarter of the previous fiscal.
The bank's gross and net non-performing assets increased to 3.28% (2.93%) and 2.01% (1.52%) respectively. However, on a sequential basis, the net NPAs came down from 2.21% during the quarter ended September 30, 2011.
