UBI's profit and business on upswing

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Kolkata, Jan 31 (UNI) United Bank of India has crossed business of Rs 65,554 crore registering a growth of 21.0 per cent with net profit standing at Rs 307.21 crore at the end of third quarter of the current fiscal ending December 31,2007.

Announcing the bank's results, Kolkata based UBI's Chairman cum Managing Director P K Gupta today said the deposits also registered 23.0 per cent growth that stood at Rs 41,203 crore and advances went up to Rs 24351 crore, a growth of 17.7 per cent as on December 31,2007. The credit-deposit ratio of the bank stood at 59.1 per cent.

Bank's priority sector advances have also gone up to Rs 9692 crore during the period from Rs 7676 crore, a grwoth of 25.3 per cent and retail credit upped by 70.4 pc to Rs 6308 crore from Rs 3702 crore.

Share of retail credit had gone up from 17.9% to 25.9% during the same period. Under Retail Credit, for the loans under housing sector UBI's growth has been 138.7% while education loans growth went up 26.2 per cent.

UBI's net profit has moved up to Rs 307.21 crore in last three quarters from Rs 231.84 crore in the corresponding period.

Bank's interest income growth touched 28.9% at Rs 2633.78 crore from Rs 2043.12 crore. Non interest income also grew by 45.7% to Rs 295.11 crore from Rs 202.56 crore during the same period. Operating expenses grew by 14.7% from Rs 547.55 crore during Apr-Dec 2006 to Rs 628.13 crore in the last quarters.

In the area of non-performing assets, Mr Gupta said as on December 31, 2007, the ratio of gross NPAs stood at 3.85% (3.60% as of March 2007) while the Net NPA ratio worked out to 1.30% (1.50%).

Mr Gupta said growth in business had a positive impact on Bank's productivity and profitability ratios. Business per branch has improved from Rs 41.08 crore as on December 2006 to Rs 47.16 crore during the corresponding period in 2007. Net profit per branch stood at Rs 22.10 lakh as on December in 2007 from Rs 17.58 lakh in the correspnding year of 2006.

On technology front the UBI was advancing with Core Banking Solution (CBS). As on December 2007, 234 branches were operating on CBS platform which had since increased to 282 branches accounting for over 62% of the bank's business. The UBI has planned to put 300 plus of its branches under CBS, covering two-third of its business by March 2008, Mr Gupta said. The bank now has 161 ATMs across the country and more in the pipeline, added Mr Gupta.

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