Union Bank of India Q1 net rises 31.3% to Rs 174 crore

KOLKATA: United Bank of India ( UBI) today posted a 31.3 per cent increase in net profit to Rs 173.89 crore in the first quarter of 2012-13, against Rs 132.48 crore in the same period last year.

Announcing the results here today, UBI Chairman and Managing Director Bhaskar Sen said the operating profit of the bank increased 31 per cent at Rs 546 crore compared to Rs 417 crore in the corresponding period last year.

He said advances increased by almost 20 per cent to Rs 63,625 crore while deposits touched Rs 89,639 crore, up 16.3 per cent over the corresponding period.

The bank's present capital adequacy ratio is comfortable to sustain 20 per cent business growth for the next two years, he added.

The bank is weighing options like a follow-on public offer or approaching the government for funds, he said.

Net interest margin during the quarter stood at 3.05 per cent.

Gross and net NPAs of the bank, however, witnessed a rise at 3.47 per cent and 1.77 per cent, respectively, compared to 2.89 per cent and 1.67 per cent in the corresponding period.

Sen said the rise was due to the ongoing economic slowdown.