The Hindu Business Line : Union Bank posts small rise in Q3 net; to pay 20 pc interim

UNION Bank of India has recorded a 4.49 per cent increase in net profit for the third quarter ended December 2003 at Rs 150.04 crore as against Rs 143.58 crore in the corresponding previous period.

The bank's board has approved a 20 per cent interim dividend for the 2003-04, subject to RBI approval, said Mr V. Leeladhar, Chairman and Managing Director.

He told newspersons that the slowdown in the growth of net profit during the quarter under review was mainly due to the drop in the profits on sale of investments.

Income from sale of investments has dropped to Rs 81.72 crore for the third quarter, compared to Rs 105 crore earlier.

Total income rose to Rs 1,344.01 crore (1,281.33 crore), which was inclusive of interest earned at Rs 1,165.37 crore (Rs 1,092.98 crore) and other income at Rs 178.64 crore (188.35 crore).

Total expenditure increased to Rs 987.87 crore (Rs 981.73 crore), inclusive of interest at Rs 712.48 crore (Rs 727 crore) and operating expenses at Rs 275.39 crore (Rs 254.73 crore).

Provisions and contingencies were at Rs 156.02 crore (Rs 206.10 crore).

The ratio of net NPA to net advances improved to 4.07 per cent in December 2003 from 5.60 per cent earlier. Cash recoveries amounted to Rs 231 crore as on December 2003.

For the nine months ended December 31, net profit and total income stood at Rs 475.79 crore (Rs 350.85 crore) and Rs 3,906.68 crore (Rs 3,646.36 crore) respectively.

Advances aggregated Rs 27,879 crore (Rs 24,123 crore), while deposits grew to Rs 47.620 crore (Rs 43,394 crore).

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