Crisil revises ratings on different bonds of UBI

Kolkata, Feb 26 : State-run United Bank of India (UBI) on Tuesday said rating agency Crisil has revised the ratings on its different bonds, under Basel II and III, considering profitability, asset quality and provision coverage ratio (PCR) of the bank.

"CRISIL has downgraded its ratings from CRISIL A to CRISIL A-/Stable for Rs 300 crore Tier I Perpetual Bonds (under BASEL II), from CRISIL AA- to CRISIL A+ /Stable for Rs 200 crore Lower Tier II Bonds (under BASEL II) and from CRISIL AA- to CRISIL A+ /Stable for Rs.

1490 crore Tier II Bonds (under BASEL III)," the bank said in a regulatory filing.

"The ratings have been downgraded considering profitability, asset quality and PCR of the bank as on December 31, 2018," the bank said.

The city-headquartered lender reported a Rs 1139.25 crore net loss for the December quarter this fiscal against a net loss of Rs 637.53 crore for the same period last fiscal.

The bank, which is under the prompt corrective action (PCA) of the Reserve Bank of India, had reported a net loss of Rs 883.17 crore for the second quarter this fiscal.

"The outlook has been revised to 'Stable' from 'Rating watch with negative implications' in view of bank's healthy resource profile and established market position in rural and semi-urban area in eastern India, and possibility of gradual improvement in asset quality and profitability," the filing said.

During the December quarter of the current fiscal, gross non-performing assets (NPAs) in absolute terms fell 2.81 per cent quarter-on-quarter to Rs 14737.61 crore from Rs 15163.28 crore from the September quarter.

Gross NPA as a percentage of total loans also decreased to 21.27 per cent from 22.69 per cent during the previous quarter.

During the period under review net NPA ratio fell sequentially at 12.08 per cent.

--IANS

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Source: IANS