Union Bank net down 65.97%

BS 200 SCORECARD

Union Bank of India has posted 65.97 per cent drop in net profit to Rs 144 crore for the fourth quarter ended March 2006 from Rs 239 crore in the corresponding quarter last year.

Total income for the quarter rose 18.85 per cent to Rs 1,784 crore from Rs 1,501 crore in the year-ago period.

For the full year ended March 2006, the public sector bank's net profit declined 6.12 per cent to Rs 675 crore from Rs 719 crore last year. Total income for the year rose 13.13 per cent to Rs 6,489 crore from Rs 5,736 crore.

The bank's total business rose 25.07 per cent in 2005-06 to Rs 1,28,738 crore from Rs 1,02, 934 crore last year. Total deposits rose by 19.83 per cent to Rs 74,094 crore as on March 31, 2006, from Rs 61,831 crore last year. Advances were up by 32.94 per cent at Rs 54,644 crore for 2005-06 from Rs 41,103 crore.

The cost of deposits came down from 4.97 per cent in March 2005 to 4.75 per cent in March 2006. The yield on advances, which was 8.33 per cent in 2004-05 fell to 8.18 per cent in 2005-06.

The yield on investment also declined from 8.20 per cent in 2005 to 7.84 per cent this year. Net interest margin (NIM) was down to 3.03 per cent from 3.31 per cent last.

The ratio of gross non-performing assets reduced from 5.01 per cent from March 2005 to 3.84 per cent in March 2006. Net NPAs were down to 1.56per cent from 2.64per cent a year ago.

Keeping with the growth in advances, the capital adequacy ratio for year ended March 2006 declined to 11.39 per cent from 12.09 per cent last year.