Union Bank of India second quarter net up 39.50% to Rs.505 crore
Capital & Net Worth:
The Bank’s Capital Adequacy Ratio (CRAR) – BASEL II has improved to 13.76% as on 30th Sept’09 from 11.77% as on 30th Sept’08.
The Bank’s Net Worth increased by 27.62% and stood at Rs.7916 crs as on 30th Sept’09 in comparison to Rs. 6203 crs as on 30th Sept’08.
Financial Performance (Quarterly):
The Net Interest Margin (N.I.I. to Earning Assets) of the Bank stood at 2.34% for the quarter ended 30th Sept’09 which has improved from 2.27% for the quarter ended 30th June, 2009.
The Bank’s Net Interest Income declined from Rs. 973 crs to Rs.864 crs, declined by 11.20% over the corresponding quarter of previous year. Net Interest Income started moving up from August due to impact of lower cost of deposit.
Non-interest income increased to Rs.555 crs from Rs.285 crs in quarter ended Sept’08. Core fee Income for the quarter Q2-10 improved to Rs 217 crs as against Rs 156 crs in the corresponding period of the previous quarter, a growth of 39.10%.
Operating expenses increased to Rs.609 crs in Sept’09 as against Rs. 558 crore in Sept’08 on account of provision for wage arrears.
Asset Quality:
Gross NPAs stood to Rs.1919 crs as on 30th Sept’09 as compared to Rs.1923 crore as on 31st March, 2009 and Rs 1675 cr as on 30th Sept’08.
Gross NPAs of the Bank was maintained at 1.93%.
Net NPAs increased to Rs.223 crs as on Sept’09 from Rs. 116 crs as on Sept’08.
Net NPAs has marginally increased to 0.23% as on 30th Sept’ 09 from 0.14% as on 30th Sept’08.
The coverage of provisions for NPAs as on 30th Sept’09 was at 88.38%.
Ratio Analysis (Quarterly):
Decrease in Yield on advances to 10.14% and Yield on funds to 7.95%, increase in Cost of deposits to 6.29% and Cost of Funds to 5.81% for the quarter ended 30th Sept’09 resulted in Net Interest Margin(NIM) declining to 2.34% in Sept’ 09.
Return on Average Assets improved from 1.12% in Sept’08 to 1.25% in Sept’09.
Return on Equity improved from 23.31% in Sept’08 to 25.52 % in Sept’09.
EPS and Book value showed improvement to Rs. 40.00 and Rs. 156.72 in Sept’09 from Rs. 28.62 and Rs. 122.80 respectively in Sept’08.
Cost to Income Ratio improved from 44.40% in Sept’08 to 42.90% in Sept’09.
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(This is a press release from Union Bank of India)
