The Hindu Business Line : United Bank posts 19.5% rise in net profit

Kolkata, April 25 United Bank of India, which is yet to enter the market with an offer of public issue of equity shares, posted 19.5 per cent growth in net profit at Rs 318.95 crore in 2007-08 (Rs 267.28 crore in 2006-07).

“The net profit has been arrived at after providing for a liability of Rs 82 crore under AS-15, depreciation on investments to the tune of Rs 73 crore and a floating provision of Rs 110 crore,” Mr P.K. Gupta, CMD of the bank, told newspersons here on Friday. “We have decided to pay Rs 45.97 crore dividend (three per cent, which is the same as the previous year) to the Government.”

The bank’s business during the year under review amounted to Rs 75,123 crore (Rs 59, 808 crore), a growth of 25.6 per cent, comprising Rs 46,971 crore of deposits (Rs 37,167 crore) or a growth of 26.4 per cent and Rs 28,152 crore of advances (Rs 22,641 crore) or a growth of 24.3 per cent.

The net NPA ratio declined from 1.5 per cent in 2006-07 to 1.10 per cent in 2007-08 and the gross NPA ratio from 3.6 per cent to 2.7 per cent during the same period. “Despite fresh generation of NPAs aggregating Rs 987 crore in the past three years, the gross NPAs in absolute figure rose by just Rs 35 crore, from Rs 726 crore in March 2005 to Rs 761 crore in March 2008, suggesting the bank’s prudent NPA management,” Mr Gupta observed.

The NPA provision as on March 2008 stood at Rs 455 crore with coverage ratio of 59.8 per cent. The slippage ratio i.e. ratio of fresh NPAs to opening standard assets improved to 1.49 per cent (2.66 per cent).

The net interest income during the period amounted to Rs 904.61 crore (Rs 1,149.89 crore) and non-interest income at Rs 465.49 crore (Rs 347.68 crore) showed a growth of 33.9 per cent. Out of the non-interest income, the profit from the treasury operation amounted to Rs 179 crore (Rs 42 crore in 2006-07).

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