Financial Daily from THE HINDU group of publications
Sunday, Jan 23, 2005
Financial Daily from THE HINDU group of publications Sunday, Jan 23, 2005 |
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Corporate Results
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Public Sector Banks Money & Banking - Financial Performance Union Bank net falls 60% Our Bureau
Mumbai , Jan. 22 UNION Bank of India has recorded a 60.63-per cent dip in net profit for the third quarter ended December 31, 2004 at Rs 59.07 crore, against Rs 150.04 crore during the quarter a year ago. Mr K. Cherian Verghese, Chairman and Managing Director, said the lower profits were on account of the depreciation booked on the SLR securities transferred to the held to maturity (HTM) category. During the quarter, the bank shifted securities worth Rs 6,275 crore to the HTM category on which it booked a depreciation of Rs 545 crore. Mr Verghese said the bank was doing well on all other parameters. "We are seeing a robust growth in the bank's core areas of operations like retail, corporate credit and agricultural credit," he said. The bank also plans to tap the domestic debt market shortly to raise Rs 450 crore through a tier-II issue. The bonds are `AA' rated and have a tenor of 123 months and will help the bank strengthen its capital adequacy ratio back to 12 per cent levels. "Our CAR has gone down to 11.38 per cent during this quarter against 13.4 per cent in the corresponding period the previous year due to aggressive credit growth. We would like it to be back at 12-per cent levels by the year-end," said Mr Verghese. Total advances of the bank aggregated Rs 37,512 crore as on December 31, 2004 against Rs 27,878 crore in the corresponding period the previous year. Retail advances stood at Rs 8,039 crore (Rs 5,863 crore). Priority sector advances grew to Rs 16,858 crore (Rs 12,642 crore). Agriculture advances increased to Rs 5,690.06 crore (Rs 4,230.21 crore). Deposits grew to Rs 55,817 crore, against Rs 47,620 crore in the year-ago period. The ratio of net NPA to net advances came down to 2.11 per cent from 4.07 per cent.
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