United Bank net profit up 25 per cent

United Bank of India (UBI) has posted a 25.4 per cent rise in its net profit at Rs 88.21 crore during April-June 2007 against Rs 70.35 crore recorded during the same period last year.

The bank has achieved a total business of Rs 61,112 crore, clocking a year-on-year growth of 32 per cent, PK Gupta, the chairman and managing director, said.

The bank's deposits (as on June 2007) stood at Rs 38,380 crore, registering an annual growth of 28.2 per cent and the advances grew by 38.9 per cent to reach Rs 22,732 crore.

UBI's priority sector lending recorded a 33 per cent year on year growth to touch Rs 9,527 crore.

While the lending for agricultural sector went up by 23.1 per cent, that of small scale industries grew by 34.5 per cent.

The retail sector credit grew by 98 per cent to reach Rs 5770 crore.

Talking on non-performing assets(NPAs), Gupta said, "The ratio of gross NPAs on 30 June 2006 stood at 3.87 per cent against4.64 per cent on June 2006".

The net NPA ratio is 1.57 per cent compared with 1.92 per cent last year.

UBI's capital adequacy ratio has improved to 13 per cent on June 2007 as against 12.02 per cent last year. The bank also raised a tier-2 capital worth Rs 575 crore during April-June 2007.

The bank's interest income rose by 28.2 per cent from Rs 655.24 crore during April 2006-07 to Rs 839.76 crore during April-June 2006.

Non-interest income also increased by 34.8 per cent from Rs 58.47 crore to Rs 78.83 crore during the same period. The annualised returns on assets improved to 0.81 per cent compared to 0.73 per cent last year.

The bank's average business per branch rose from Rs 35.39 crore on June 2006 to Rs 43.69 crore on June 2007. The net profit per branch rose from Rs 21.24 lakh on June 2006 to Rs 26.07 lakh on June 2007.