Union Bank of India- Financial Results-December 2009
Mumbai, January 27, 2010:
WORKING RESULTS – QUARTER ENDED DEC 2009
FINANCIAL HIGHLIGHTS
Key Financials
• Union Bank of India recorded quarterly Operating profit of Rs.914 crs for Dec. 09 as against Rs. 854 crs for the quarter ended Dec. 08 recording a growth of 7.03%.
• The Bank recorded a Net Profit of Rs.534 crs for Q3-FY10 as against Rs.671 crs for the corresponding quarter of the previous year. The lower Net Profit is mainly due to write-back of depreciation on investments of Rs. 291 crores in Dec. 08 quarter, which benefit was not available in Dec. 09 quarter. Without reckoning the write back of depreciation the net profit would have shown growth of over 40%.
• Capital Adequacy under BASEL II is at a healthy level of 13.46% as on 31st Dec.09 as against the regulatory minimum of 9%. Tier I CAR stood at 8.70%.
• Net Worth of the Bank increased to Rs. 8453 crs as of Dec.’09 from Rs. 6864 crs as of Dec’08 due to plough back of profits.
• Return on Average Assets is at 1.29% in quarter Dec’09 as compared to 1.92 in the quarter ended Dec’08. RoA as of Dec’09 is consistent with the last two years’ level of 1.27% as of 31st March 09 and 1.26% as of 31st March 08.
• Return on Equity (RoE) is at 25.28% for Dec. 09 quarter as compared to 29.15% for Dec’08 quarter. RoE for Dec’09 is consistent with the last two years’ level of 24.79% as of 31st March 09 and 24.70% as of 31st March 08.
• The Gross NPAs as on 31st Dec. 09 was at 1.96% as compared to 1.68% as on on 31st Dec 08. However, the Bank has been able to retain NPAs at March 09 level of 1.96% despite downturn in the economy. Net NPAs stood at 0.58% as on 31st Dec. 09 as compared to 0.14% as on 31st Dec 08.
Performance in Brief
Business:
The Bank achieved a total business–mix of Rs.257619 crs, a growth of 15.72% over previous year’s level of Rs.222625 crs as on 31st Dec. 08.
The Bank’s total deposits as on 31st Dec. 09 reached a level of Rs.151085 crs from Rs.129647 crs as on 31st Dec. 08, an increase of 16.54%. Demand deposits grew by 24.08% to Rs.48861 crs as on 31st Dec. 09 from Rs. 39378 crore as on 31st Dec. 08.
Gross advances of the Bank reached a level of Rs.106534 crs as on 31st Dec. 09 from Rs.92978 crs as on 31st Dec. 08, registering an increase of 14.58% over Dec. 08.
MSME advances grew by 41.12% YoY from Rs.14612 crs as of Dec. 08 to Rs.20630 crs as of Dec. 09.
Agri advances grew by 29.02% from Rs 13591 crs as of Dec. 08 to Rs.17535 crs as of Dec. 09.
Retail Advances grew to Rs.11843 crs from Rs.9784 crs in the previous year. Within Retail advances, Home Loans, Car Loans and Educational Loans grew by 23.06%, 19.83% and 36.67% resp. YoY.
Capital & Net Worth :
o The Bank’s total Capital Adequacy Ratio (CRAR) under BASEL II as at 31st Dec. 09 stood at 13.46% as against 13.41% as on 31st Dec. 08 despite increase in business.
o The Bank’s Net Worth increased by 23.15% and stood at Rs.8453 crs as on 31st Dec. 09 in comparison to Rs.6864 crs as on 31st Dec. 08.
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(This is a press release from Union Bank of India)
