United Bank first half net falls 34%

Higher provision for depreciation on investment at United Bank of India (UBI) led to a 34 per cent dip in net profit to Rs 156 crore for the first half (H1) of the current fiscal against Rs 238 crore in H1 of the last fiscal.

Operating profit however registered a 21 per cent growth to Rs 336 crore in this H1 against Rs 276 crore in the previous corresponding period.

This was due to higher interest income and reduction in NPA on one hand and decline in cost of deposit on the other.

Executive director K N Prithiviraj, said, "UBI registered a net credit disbursal of Rs 1,600 crore in the last six months against a total credit disbursal of Rs 700 crore in the last two years. This has helped in enhancing the bank's operating profits."

UBI registered a Rs 744 crore income this H1 from investment against Rs 766 crore in the previous corresponding period.

Trading profit from investment was Rs 131 crore this H1 against Rs 116 crore in the previous period.

Interest income from advances also increased from Rs 328 crore to Rs 383 crore in the first half of the current year.

Fresh generation of NPA was Rs 45 crore against Rs 156 crore for the whole of 2003-04.

Its net NPA declined from 2.8 per cent to 5.9 per cent in the previous period. It recovered cash to the extent of Rs 65 crore in this H1 against Rs 31 crore in the previous year.

"Low cost deposit increase, cost control and increase in income from core activity has helped the bank maintaining a robust growth rate," the director explained.