Performance Highlights as on 31st
December 2005
United Bank of India sees robust growth
of 34.9% in Credit.
United Bank’s Deposits increase by
14.8%.
Total business grows by 21%.
Credit Deposit Ratio improves from 44.4%
to 52.2%.
Gross NPA ratio declines from 6.76% to
4.83%.
Net NPA ratio declines from 2.45% to
2.19%.
Operating profit improves to Rs 490.66
crore.
Net Profit improves to Rs 175.42 crore.
January 20, 2006
The Board of Directors of United Bank of India
met in Kolkata yesterday, i..e. Thursday, the 19th January 2006 to take on record the
quarterly results for the quarter ended December 2005.
Shri P.K. Gupta, Chairman & Managing
Director in a Press Meet said that the Bank’s total business has registered an
increase of 21% from Rs 34,370 crore as on 31st December 2004 to Rs 41,580 crore as on
31st December 2005. The Deposits have grown by 14.8% from Rs 23,803 crore as on 31.12.2004
to Rs 27,324 crore as on 31.12.2005. The Advances have shown a robust growth of 34.91%
from Rs 10,567 crore as on 31.12.2004 to Rs 14,256 crore as on 31.12.2005.
Analyzing the growth in deposits, Shri Gupta
elaborated that the Savings Bank deposits have seen a Year-on-Year growth of 14.4% whereas
the Current Deposits have grown by 18% during the same period. Consequently, the low cost
deposit for the Bank now constitutes 46.1% of the total deposits and cost of deposits has
further come down to 4.94% during April-December 2005 as against 5.09% during
April-December 2004.
Analysing the Advances portfolio, Shri Gupta
informed that the Retail Credit portfolio of the Bank has increased from Rs 1,585 crore as
on 31.12.2004 to Rs 2,683 crore as on 31.12.2005 registering a growth of 69.27%. Housing
Loans have taken a quantum jump of 97.27% from Rs 733 crore as on 31.12.2004 to Rs 1,446
crore as on 31.12.2005. The Education Loans have gone up by 101.5% from Rs 66 crore as on
31.12.2004 to Rs 133 crore as on 31.12.2005. So far as the Priority Sector Advances is
concerned, Shri Gupta informed that these have seen a healthy growth of 50% from Rs 3,940
crore as on 31.12.2004 to Rs 5,909 crore as on 31.12.2005. Within the Priority Sector
Credit, the S.S.I. Advances have grown by 71.2% from Rs 671 crore to Rs 1,149 crore. The
Agricultural Advances have grown by 55% from Rs 1,275 crore as on 31.12.2004 to Rs 1,971
crore as on 31.12.2005.
The Bank’s Net Investment portfolio stood
at Rs 14,298 crore as on 31.12.2005 registering a growth of 6% on Year-On-Year basis.
The quality of loan assets has further improved
in as much as the gross NPA ratio has sharply declined to 4.83% as on 31.12.2005 as
against 6.76% as on 31.12.2004. The Net NPA ratio has also declined to 2.19% as on
31.12.2005 as against 2.45% as on 31.12.2004.
The Bank’s Operating Profit have increased
to Rs 490.66 crore during the nine months period ended December 31, 2005 as against Rs 470
crore during the corresponding period last year. The Net Profit has increased from Rs
165.97 crore during April – December 2004 period to Rs 175.42 crore during April
– December 2005 period. Considering the fact that there has been an impact of almost
Rs 100 crore on account of wage revision and the lower income from trading in Government
Securities, Shri Gupta felt that the performance under profitability could be considered
as satisfactory.
The Bank is continuously upgrading its
technological infrastructure. The Bank is in the process of implementing Core Banking
Solutions (CBS). It has engaged Ernst & Young Pvt. Ltd. as its Consultant for
implementation of CBS. The Bank has already invited Expression of Interest for selection
of prime vendor. The responses received are being processed and the Bank is intending to
issue Request For Proposal (RFP) to short list the vendors, shortly.
Bank’s tie-up arrangements with Tata AIG
Life Insurance Co. Ltd. for distribution of Life Insurance Policies and that of with Bajaj
Allianz General Insurance Co. Ltd. for distribution of Non-Life Insurance Policies are
working satisfactorily.
Shri Gupta also informed about two new Members
– Shri Abdul Rashid and Shri P.C. Zoram Sangliana joining the Board on 19th January
2006 pursuant to the notifications dated 10th January 2006 issued by the Government of
India. |
