United Bank’s net up by 13.7 percent in Q2

October 31st, 2011 - 7:03 pm ICT by IANS  

Kolkata, Oct 31 (IANS) The public sector United Bank of India Monday announced that its net profit rose to Rs.124.77 crore during the second quarter ended Sep 30 — a 13.7 percent hike compared to the like period last year.

“Our net profit is up mostly because of high yields. Our NIM (Net Interest Margin) has gone up from 3.05 percent to 3.16 percent. We also have seen a reasonable growth in fee income. Also, our cost income ratio has come down,” United Bank of India Chairman and Managing Director Bhaskar Sen told reporters here.

The bank’s net interest income increased by 18.5 percent to Rs.623.52 crore during the second quarter of this fiscal from Rs.526.23 crore during Q2 of FY11.

The bank’s operating profit was up by 27 percent to reach Rs.450.42 crore during the period as against Rs.354.55 crore for the quarter ended September 2010.

Sen said the bank’s advances and deposits during the second quarter of the current financial year were up by 17.1 percent and 13.3 percent, respectively, to reach Rs.54,842 crore and Rs.78,244 crore, respectively.

The bank’s gross NPA and net NPA increased to 3.48 percent and 2.2 percent, respectively, during Q2 of FY12 from 3.12 percent and 1.58 percent, respectively, during the corresponding period last fiscal.

The United Bank is aiming to clock total business worth Rs.150,000 crore in the current financial year.

“We are trying to reach the level of Rs.150,000 crore total business by the end of this financial year,” Sen said.

On the possibility of a hike in interest rate on savings account by the bank after the deregulation of the savings account interest rate by the Reserve Bank of India (RBI) last week, he said: “We are going to have discussion on this at ALCO (Asset Liability Management Committee) level. We will take stock of the situation… take a view on that within a day or two.”

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