UBI Q3 net up 8.5 pc at Rs 579-crore

Mumbai, Jan 24 (PTI) State-owned Union Bank of India(UBI) today said that it has posted a net profit growth of 8.5per cent at Rs 579.57-crore for the quarter ended December 31,2010, as against Rs 534.13-crore in the corresponding period ayear-ago.

The bank''s total income increased to Rs 4,693.06-crorein the quarter from Rs 3,758.32-crore in Q3 FY 10.

"The December quarter was an excellent quarter ascompared to Q3 FY 10. Net profit has been protected despitea substantial increase in NPA provision of Rs 361-crore asagainst Rs 43-crore in the corresponding period of theprevious year," Union Bank''s Chairman and Managing Director, MV Nair, told reporters here.

"All sectors including corporate and agriculturecontributed towards profit in the December quarter," he said.

The bank''s savings deposits grew by 33.43 per cent toRs 46,416-crore in the December quarter as against Rs34,788-crore in the previous year.

The public sector lender''s net NPA in the Decemberquarter increased to 1.21 per cent as against 1.18 per cent inthe previous year. Its gross NPAs, however, declined to 2.68per cent in the quarter as compared to 2.79 in thecorresponding period a year-ago.

"We will try to rein-in gross NPAs below 2.40 byMarch 2011," Nair said.

The bank''s net profit for the first nine-months stoodat Rs 1,484.38-crore, as compared to Rs 1,481.42-crore in theyear-ago period. .

Its total income in April-December 2010-11 was Rs 13,275.59-crore as against Rs 11,223.22-crore for the sameperiod in the last fiscal.

The bank''s domestic deposits grew 23.52 per cent atRs 1,86,224-crore in the December quarter as againstRs 1,50,764-crore in the year-ago period. Its CASA depositsgrew by 27.11 per cent to Rs 62,106-crore in the quarter fromRs 48,861-crore in the previous year.

The bank is targeting a CASA of at least 35 per centby March this year, Nair said.

On fund-raising, Nair said, "we have no plan to raisefunds in the near future, but there is a room to raiseRs 4,500-crore for Tier I capital in future." But he did notgive a time-frame for this.