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United Bank profit zooms to Rs 148 cr

Calcutta, Dec. 3: The United Bank of India (UBI) has posted a 24 times rise in its pre-tax net profit to Rs 148 crore in the first six months of the current fiscal as against Rs 6 crore in the corresponding period of the previous year.

The bank has registered a 240 per cent increase in its operating profit to Rs 192 crore in the first six months of the current fiscal as against Rs 57 crore in the corresponding period of the previous year.

Addressing a press conference today, Madhukar, chairman and managing director of UBI, said, “The result is the reflection of the bank’s thrust on maximising the efficiency in every segment instead of merely going for increase in size.”

The spurt in profit is due to a rise in interest income by Rs 40 crore. The other factor that influenced the hike was the reduction in the cost of deposits. The bank’s total business has crossed the Rs 28,000-crore mark compared with last September's business of Rs 25,600 crore. The capital adequacy ratio increased from 10.8 per cent to 13.5 per cent.

The chairman said, “The Tier-I capital alone has reached 10.7 per cent for the first time which is well above the minimum overall requirement of 9 per cent prescribed by the Reserve Bank. The capital adequacy has been achieved without raising any equity or Tier-II bond.”

The net non-performing asset of the bank is down from 10.2 per cent to 7.6 per cent. The bank has been able to recover Rs 40 crore in the first six months as against Rs 34 crore in the corresponding period of the previous year. UBI has made a fresh accretion of NPAs to the tune of Rs 20 crore as against Rs 50 crore in the previous year.

The bank has issued 140 notices under the new NPA Ordinance to recover about Rs 75-80 crore. “About 20 of them have already responded,” he said.

Total advances of the bank has gone up to Rs 7,428 crore from Rs 6,634 crore in the first six months.

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