Backed by growth in both interest and non-interest incomes, United Bank of India posted 32 per cent increase in net profit during the first quarter of this fiscal.
Net interest income grew by 20 per cent to Rs 684 crore during the quarter ended June 30, 2012, compared with the same period last year.
According to Bhaskar Sen, Chairman and Managing Director, United Bank, apart from posting a healthy growth in interest and non-interest income, the bank has also been able to curtail its operating expenditure.
“This has helped boost our net profit,” he said at a press meet to announce the bank’s performance here on Friday.
Net interest margin improved to 3.05 per cent (3.02 per cent). The percentage of gross non-performing assets to advances increased to 3.47 per cent (2.89 per cent), while net NPAs rose to 1.77 per cent (1.67 per cent).
The bank’s capital adequacy ratio stood at 12.5 per cent as on June 30, 2012.
“We aim to grow our business by 20 per cent. We have adequate capital to support this growth for the next two years. Post that we might look at several options like follow-on public offer or we might even approach the Government,” he said.
The shares of the bank closed at Rs 56.70, up 4.13 per cent on the BSE on Friday.