The Hindu Business Line : Union Bank net falls as investment income dips

THE Union Bank of India saw its net profit decline by 71.09 per cent to Rs 61 crore during the quarter ended September 30, from Rs 211 crore during the corresponding quarter last year, due to a reduction in profit on sale of investments.

The bank took a hit of Rs 235 crore on account of shifting government securities worth Rs 7,224 crore from allowed- for-sale category to held-to-maturity category.

Total income increased to Rs 1,560 crore (Rs 1,354 crore). Net interest income rose to Rs 602 crore (Rs 457 crore). Total expenditure increased to Rs 1,203 crore (Rs 1,045 crore).

Capital adequacy ratio fell to 11.06 per cent (12.12 per cent), due to expanding asset base.

Mr K. Cherian Varghese, Chairman and Managing Director, Union Bank of India, said, "Our deposits have grown 23 per cent to Rs 13,020 crore and advances by 33.46 per cent to touch Rs 11,907 crore. A robust growth in credit, across the board, is likely in this fiscal."

The ratio of net non-performing assets to total assets fell from 2.06 per cent to 1.37 per cent, due to effective recovery. The bank recovered Rs 195 crore in cash, Mr Varghese said.

Retail lending stood at Rs 9,571 crore (Rs 7,382 crore), an increase of 29.65 per cent. Home loans grew to Rs 3,508 crore (Rs 2,611 crore), an increase of 34.35 per cent.

Infrastructure lending registered a huge increase of 67.10 per cent to touch Rs 4,532 crore, (Rs 2,712 crore).

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