Union Bank Q1 Net Jumps 81% To Rs 113 Crore

Union Bank of India has reported an 81 per cent jump in its net profit to Rs 113.91 crore in the first quarter (Q1) ended June 30, 2002 against Rs 63.03 crore in the corresponding period in the previous financial year.

Interest income in the reporting quarter was up 10.6 per cent at Rs 1,088.59 crore against Rs 984.42 crore in Q1 of 2001-02 and non-interest income increased by 12.8 per cent to Rs 97.33 crore compared with Rs 86.28 crore in the corresponding quarter last year.

Treasury (trading income) has contributed Rs 15.13 crore (Rs 21.98 crore in Q1 of 2001-02) to the non-interest income, according to a bank statement.

Interest expenses increased by 4.76 per cent to Rs 717.62 crore against Rs 684.95 crore in Q1 of 2001-02.

Total business of the bank increased by Rs 780 crore from Rs 62,260 crore as on March 31, 2002 to Rs 63,040 crore. In the reporting Q1, deposits rose by Rs 500 crore to Rs 40,323 crore and advances grew by Rs 280 crore to Rs 22,714 crore.

Provisions made by the bank rose 56.36 per cent to Rs 106.33 crore in the reporting Q1 against Rs 68 crore in Q1 of 2001-02.

Union Bank's gross non-performing assets (NPAs) came down by Rs 14 crore in Q1 from Rs 2,420 crore as on March-end 2002 to Rs 2,406 crore. Gross NPAs, in percentage terms, have come down to 10.59 per cent as of June end 2002 against 11.05 per cent at the end of the corresponding quarter in the previous year.

Net NPAs declined by Rs 57 crore in the reporting Q1 from the March-end 2002 level of Rs 1,359 crore. Net NPAs in percentage terms have come down to 5.92 per cent as of June end 2002 against 6.51 per cent as of June end 2001.

Coverage of NPAs through cumulative provisions has been stepped up from 44 per cent as of March-end 2002 to about 46 per cent as of June end 2002.

Cost of deposits has declined from 7.56 per cent as of June-end 2001 to 7.01 per cent as of June-end 2002. Yield on advances came down from 11.44 per cent in June 2001 to 11.14 per cent as of June-end 2002. Yield on investments has come down from 11.57 per cent in June 2001 to 10.60 per cent as of June 2002.