Union Bank Net Profit up by 31.16 pc for Q2

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Mumbai, Oct 25 (UNI) Union Bank (UB) has posted net profit has increased to Rs 362 crore for the second quarter ended September 30, 2008 from Rs 276 crore in the same period last year.

Announcing quarter reviews, The bank CMD Mr M V Nair told reporers here today that, ''The Bank recorded a quarterly Operating profit of Rs 700 crore for September 2008 as against Rs 529 crore for the quarter ended September 2007, registering growth of 32.33 per cent. Despite a scenerio of rising cost of raising resources, Net Interest Margins (NIM) for quarter ended September 2008 has increased to 3.01 per cent as against 2.49 per cent in September 07.

Net worth of the bank posted a smart rise to Rs 6,203 crore as of September 2008 from Rs 5,231 crore as of September 2007 due to plough back of profits. Returns on Average Assets improved from 1.05 per cent in September 2007 to 1.12 per cent in September 2008 indicating more efficient utilization of assets.'' He further stated that, ''The asset quality recorded a significant improvement with a steep reduction in net Non Performance Assets (NPAs) from 0.6 per cent in September 2007 to 0.14 per cent in Septmber 2008 and the gross NPAs from 2.42 per cent to 1.93 per cent. Gross NPA level has marginally increased from Rs 1,659 crore in September 2007 to Rs 1,675 crore in September 2008. Net NPAs reduced from Rs 437 crore in September 2007 to Rs 116 crore in September 2008.

The bank achieved a new landmark with the total busness mix of the bank crossing Rs 2,00,000 crore to reach level of Rs 2,02.488 crore. A growth of 23.92 per cent over previous year's level of Rs 1,63,399 crore as on September 30, 2007. The bank's total deposits as September 2008 reached a level of Rs 1,15,939 crore from Rs 94,804 crore on September 2007, an increase of 22.29 per cent. Demand deposits grew by 7,556 crore to Rs 38,372 crore as on September 2008 from Rs 30,816 crore as on September 2007. Gross advancees of the bank reached a level of Rs 86,549 crore as September 2008. Registering an increase of 26.17 crore over September 07.'' UNI AR ZA SKB1834

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