The Hindu Business Line : Union Bank Q4 net rises 17%; to pay 15 pc final

UNION Bank of India has recorded a 17.05 per cent growth in net profit for the fourth quarter ended March 31, 2004 at Rs 236.26 crore, against a net profit of Rs 201.84 crore in the same period, the previous year.

The bank has declared a final dividend of 15 per cent subject to necessary approvals. With the interim dividend of 20 per cent declared earlier, the total dividend for the year 2003-04 is 35 per cent.

Total income was lower at Rs 1,441.09 crore during the fourth quarter, as against Rs 1,484.38 crore in the same period, the previous fiscal.

This is inclusive of interest earned at Rs 11,04.37 crore (Rs 10,68.98 crore), and other income which fell to Rs 336.72 crore (Rs 415.40 crore).

Addressing a press conference here today, Mr V. Leeladhar, Chairman and Managing Director, Union Bank of India, said, the dip in other income was mainly due to a fall in the bank's treasury income, which declined to Rs 435 crore (Rs 475 crore).

However, Mr Leeladhar emphasised, that other fee based income, which constituted non-interest income grew to Rs 397 crore (Rs 350 crore).

During the nine-months ended December 2003, the bank made provisions for taxes to the extent of Rs 248 crore. However, during the year, the bank won some court cases relating to `broken period interest', interest accrued on investments and interest on tax-free bonds, leading to some income-tax refunds. The refunds amounted to Rs 140.02 crore in the fourth quarter of the fiscal ended 2003-04. For the full financial year ended 2003-04, provisions for taxes stood at Rs 107.98 crore.

For the financial year ended March 31, 2004, the bank recorded a net profit of Rs 712.05 crore as against Rs 552.69 crore in the corresponding period, the previous year.

Total deposits of the bank increased to Rs 50,559 crore from Rs 44,749 crore earlier. Advances grew to Rs 30,928 crore from Rs 26,649 crore.

The capital adequacy ratio of the bank was at 12.32 per cent (12.41 per cent).

During the year, prudential write-offs against impaired assets were to the tune of Rs 227 crore.

Gross NPAs stood at Rs 2,347 crore (Rs 2,388 crore). While net NPAs were at Rs 845.18 crore (Rs 125.3 crore).

According to Mr Leeladhar, Union Bank has set a target of achieving a business mix of Rs 1,00,000 crore for fiscal 2004-05 and bringing down the non-performing assets below one per cent.

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