United Bank of India’s Q3 net up by 38.5 percent
January 31st, 2012 - 9:12 pm ICT by IANSKolkata, Jan 31 (IANS) Public sector lender United Bank of India Tuesday reported a 38.5 percent jump in its net profit in the quarter ended Dec 31, 2011 to Rs.2.26 billion from Rs.1.63 billion during the corresponding period last fiscal.
Net interest income of the bank during the period under review increased by 19.3 percent to Rs.6.67 billion from Rs.5.59 billion in the same period year ago.
Advances of the Kolkata-headquartered bank were up by 16.6 percent during the third quarter this fiscal to Rs.591 billion, while the deposits stood at Rs.828.15 billion during the quarter, registering an increase of 13.3 percent.
Net interest margin (NIM) of the bank during the third quarter stood at 3.38 percent compared to 3.21 percent same period last fiscal.
The bank said its profit grew by 38.5 percent in the third quarter as it consistently maintained the CASA at about 40 percent and its base rate was low in the industry.
“We have been consistently maintaining the CASA at about 40 percent. The base rate is low in the industry. We are re-pricing our products properly,,,that it is why my profit has gone up,” said executive director S.L. Bansal.
Currently, the bank’s CASA stood at 39.8 percent.
Bank chairman and managing director Bhaskar Sen said the credit of the bank was expected to grow between 16 percent and 18 percent in March quarter.
Sen said that the bank was not reducing its interest rates right now.
“We are not thinking about changing the interest rates because right now there is no such scope. We are monitoring the liquidity situation..it has improve slightly. Right now we are not thinking about changing the interest rates,” he said.
Asked on the possible capital infusion by the central government, he said: “We had sought a capital infusion of Rs.305 crore. We have prepared a capital budget for the next five years… on that basis our requirement is Rs.305 crore. We have informed the government about that. Discussions are on, but no final decision has been taken in this regard.”
The bank’s gross and net non-performing assets (NPA) have increased due to tight macro economic situation.
“Tight macro economic and liquidity conditions and system generation have affected our NPA,” Sen said.
Gross NPA of the bank stood at 3.28 percent in the third quarter this fiscal against 2.93 percent in the same period a year ago. The bank’s net NPA grew to 2.77 percent during the quarter under review from about 1.9 percent same period last fiscal.
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