Money & Banking

United Bank net profit zooms on higher interest margins

| | Updated on: Apr 29, 2011

Backed by high net interest margins and non-interest income, the Kolkata-based United Bank of India (UBI) today reported a 209 per cent increase in net profit to Rs 143.23 crore for the quarter ended March 31, 2011.

Operating profit rose by 48 per cent to Rs 425 crore. For 2010-11, net profit rose by over 62 per cent to Rs 524 crore.

The board of UBI has also proposed 22 per cent dividend to its shareholders for the last fiscal. The bank offered 20 per cent dividend in 2009-10.

According to a press release issued to the stock exchange, during the last quarter net interest income (the difference between interest earned and interest paid) increased by 36 per cent to Rs 575 crore.

Non-interest income increased by 37 per cent to Rs 220 crore.

Net interest margin improved from 2.24 per cent to 3.19 per cent during the year.

“During the last quarter the interest regime was different and profitability was better. We had also cut back on costs,” Mr Bhaskar Sen, Chairman and Managing Director, said.

On Thursday UBI shares closed at Rs 110, down by approximately one per cent, on the BSE.

EC Notice

Mr Sen, meanwhile, added that the bank has begun investigating into the allegations of violation of Election Commission expenditure guidelines in West Bengal.

It was alleged that the bank had issued drafts to the Trinamool Congress in West Bengal thereby violating the guidelines on election expenditure. The EC has already asked the Reserve Bank of India to probe into the conduct of the bank.

“We are investigating the matter and will submit a report in this regard to the regulator,” Mr Sen said.

Published on April 29, 2011

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