The Hindu Business Line : United Bank of India records Rs 175-cr net

UNITED Bank of India (UBI) has recorded a net profit of Rs 175.42 crore during April-December 2005 as against Rs 165.97 crore posted during the corresponding period of the previous year.

The bank reported an increase in operating profit to Rs 490.67 crore during the nine months ended December compared with Rs 469.97 crore during April-December 2004.

UBI, said Mr P.K. Gupta, Chairman and Managing Director, posted an increase in net worth from Rs 1,478 crore in December last year to Rs 1,800 crore in December 2005. Its CAR at 15.6 per cent compares favourably with the 15.08 per cent recorded in end 2004.

Total business consisting of deposit and advance increased by 21 per cent from Rs 34,370 crore to Rs 41,580 crore on a year-on-year basis. Deposits saw a 14.8 per cent growth to Rs 27,324 crore. The share of low cost deposits to total deposits was 46.1 per cent in end 2005.

The bank's net non-performing assetdeclined to 2.19 per cent as on December 31 (2.45 per cent).

UBI's net investment portfolio stood at Rs 14,298 crore in end December, an increase of 6 per cent on a year-on-year basis. Agricultural advances increased by 55 per cent to Rs 1,971 crore.

Room to raise Tier II

The UBI board has approved issue of Tier II capital up to Rs 300 crore, Mr Gupta said. "There is room for us to raise Tier II. We will take a view, perhaps by March, on whether we should actually go ahead with the issue," the UBI CMD told newspersons.

The board has now been expanded with two new members — Mr Abdul Rashid and Mr P.C. Zoram Sangliana — who have joined on January 19 pursuant to the recent Government notification.

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