Performance
Highlights as on June 30, 2006
United Bank of India sees robust
growth in Credit at 27.52%
United Bank’s deposits grow by
15.63%
United Bank’s business grows by
19.55%
Net Profit goes up by 10.79%
Savings portfolio grows by Rs. 1484
crore
Credit Deposit ratio improves to 54.6%
CRAR Maintained at 12.38%
Interest Income on Advance grows by
32.43%
Gross NPA ratio declines to 4.64%
Net NPA ratio declines to 1.92%
Announcing the financial results for the April -
June'06 quarter, Shri P.K.Gupta, Chairman and Managing Director stated in a Press
Conference held at Bank's Head Office on 24th July, 2006 that Bank's Gross Advances have
registered a healthy growth of 27.52% year over year whereas the Deposits have grown by
15.63% during the same period. As on 30.06.2006, the Deposits stood at Rs.29945 crore and
the Gross Advances at Rs.16367 crore. Bank's Total Business have gone up from Rs.38733
crore to Rs.46304 crore registering a growth of 19.55%.
The Retail Credit of the Bank has grown by
47.56% from Rs. 1972 crore to Rs 2910 crore as on 30.06.2006. Within the Retail Credit
segment, Housing Loans and Education Loans have gone up by 62.64% and 81.32% respectively.
Bank's continued emphasis on low cost deposits
has helped it in mobilising 10 lakh new Savings bank accounts during the last 12 months.
The Savings deposits have grown by 15.82% to reach at Rs.10862 crore. As a result the
contribution of Low Cost Deposits to the Bank's total deposit works out to 45.4% and thus
further reducing the cost of deposit to 4.77% compared to 4.93% as on 30.06.2006.
Bank's Operating Profit worked out to Rs.159.55
crore which was lower by 15.66% compared to corresponding quarter last year. However,
Bank's Net Profit has gone up by 10.79% from Rs.63.50 crore in April - June 2005 to
Rs.70.35 crore in April - June 2006.
Explaining the position in this regard, Shri
Gupta mentioned that operating profit would have been much higher but from lower trading
profit on investment portfolio (April - June 2006 Rs.8 crore; April - June 2005 Rs.61
crore) and higher depreciation on Investment (April - June 2006 Rs. 69 crore; April - June
2005 Rs. 57 crore). Improved interest income on credit portfolio and lower taxation
provision helped the Bank in improving its Net Profit.
The Gross NPA ratio of the Bank has declined
from 5.82% to 4.64% and Net NPA ratio from 2.32% to 1.92% during the period 30.06.2005 to
30.06.2006.
The Bank is moving forward with various
initiatives taken on Information Technology and Marketing fronts. It has entered into a
MoU with Hewlett Packard India Sales Pvt Ltd (HP) on June 30, 2006 for implementation and
managing the Banks' Core Banking Solution (CBS) project over the next 69 months. This tie
up is considered as one of India's most comprehensive banking IT projects. The Bank has
engaged Ernst & Young as a Consultant for implementation of this project. With the
implementation of CBS, the Bank's customers can expect a better and broader range of
banking and financial products and services on a 24 X 7 basis - across multiple delivery
channels. The pilot branch under CBS is expected to be rolled out by December 2006 with
further roll out of 55 branches by March 2007, 300 branches by March 2008 and 600 branches
by 2009.
The Bank has also taken innovative initiatives
for assisting the poor and the weaker sections of the society. In May 2006, the Bank
installed Display Windows at the ground floor of its Head Office for products manufactured
by the Self-Help Groups (SHGs) financed by the Bank. The Bank has also sponsored a 2-day
Exhibition / Sale of the products of SHGs financed by the Bank at Gaganendra
Pradarshashala, which was inaugurated by Smt. Rekha Goswami, Hon'ble Minister of State for
SHGs and Self Employment, Government of West Bengal.
The Board of Directors of the Bank in their
meeting held on July 19, 2006 at Kolkata approved the bank's proposal to approach
Government of India and Reserve Bank of India for restructuring of its capital. The Bank
would now approach the Government of India and Reserve Bank of India for their approval
for restructuring of the Bank's capital of Rs. 1532.43 crore, which is imperative before
the Bank can proceed with its plans for IPO. The bank is confident of meeting the Basel II
guidelines on Capital Adequacy and the Board's decision with regard to restructuring of
the Capital is a step in that direction.
Kolkata; July 24, 2006
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