Performance Highlights For The Year Ended 31st March, 2006
United Bank of
India pays Rs 45.97 crore as Dividend to Govt. of India after a gap of 14 years.
United Bank of
India's Total Business crosses Rs 45,000 crore
United Bank of
India wipes off its accumulated losses
United Bank of
India presents absolutely clean Balance Sheet as on March 2006
United Bank of
India sees robust growth of 34.8% in Credit
United Bank of
India's Deposits increase by 15.4%
United Bank of
India's Credit Deposit Ratio improves from 46.7% to 54.6%
Gross NPA Ratio
declines from 6.14% to 4.66%
Net NPA Ratio
declines from 2.43% to 1.95%
The Board of Directors of United Bank of India met in Kolkata
today to take on record the Annual Results for the year ended 31st March 2006. Announcing
the financial results, Shri P.K. Gupta, CMD in a Press Meet said that the Bank's Board has
approved of a dividend payment of Rs 45.97 crore to the Government of India against the
net profit of Rs 204.57 crore earned during the FY 2005-06. United Bank of India is paying
dividend to the Government after a gap of 14 years, the last dividend pay out of Rs 0.50
crore being in the year 1991-92, Shri Gupta added. The Bank's profit after providing for
the proposed dividend and tax thereon, has been appropriated towards Statutory Reserve (Rs
51.14 crore), Capital Reserve (Rs 17.62 crore) and Revenue Reserve (Rs 83.38 crore).
The Bank's total business has reached Rs 45,213 crore as on
March 2006 recording an overall growth of 21.6% as against 19.3% achieved in the previous
fiscal.
The deposits of the Bank have gone up from Rs 25,348 crore as
on March 2005 to Rs 29,250 crore as on March 2006 registering a growth of 15.4% during the
year under review. The low cost deposits consisting of savings and current deposit
accounts have reached Rs 13,567 crore as on March 2006 and constitute 46.4% of the Deposit
Portfolio.
The Bank has added more than 13 lac deposit accounts of which
over 54% are Savings Bank Accounts. This has helped in bringing down the cost of deposit
from 5.12% to 4.89%.
The Gross Advances of the Bank have increased from Rs 11,839
crore as of March 2005 to Rs 15,963 crore as on March 2006 registering a robust growth of
34.8%. The Credit Deposit ratio has increased by 7.9 percentage points to 54.6%.
Speaking about Priority Sector Advances, Shri Gupta informed
that there has been a healthy growth under Priority Sector Advances and its components.
The overall Priority Sector Advances have increased by 40.2% to reach Rs 6713 crore. The
credit to Agriculture sector has registered a growth of 36.4% to reach at the level of Rs
2387 crore. The Credit to SSI Sector has witnessed a growth of 48.5% to reach at Rs 1308
crore. Bank's Retail Credit has increased from Rs 1808 crore as on March 2005 to Rs 2833
crore as on March 2006 registering a growth of 57%. The Retail Credit constitutes 17.7% of
total advances as against 15.3% in the previous fiscal. The Housing Loans and Education
Loans have gone up by Rs 648 crore (76%) and Rs 74 crore (95%), respectively.
The Bank's net investments stood at Rs 14130 crore showing a
decline of about 1.9% over March 2005 level.
The Operating Profit of the Bank has marginally declined from
Rs 689.64 crore during FY 2004-05 to Rs 643.85 crore during 2005-06. The Net Profit worked
out to Rs 204.57 crore in 2005-06 as against Rs 300.18 crore during last fiscal. Shri
Gupta pointed out that increased depreciation on investments to the extent of Rs 110
crore, higher wage bill to the tune of Rs 130 crore and lower income from trading in
investments to the extent of Rs 72 crore have resulted in decline in profitability.
The Bank has netted off its accumulated loss of Rs 278.44
crore against the Capital after obtaining the approval from the Government, as a result of
which the Equity Capital stood at Rs 1532.43 crore. The tangible net worth of the Bank has
improved from Rs 1678.76 crore as on March 2005 to Rs 1828.80 crore as on March 2006
registering a growth of 8.9%. The Bank's Capital Adequacy Ratio (CRAR) stood at a healthy
level of 13.12% as on March 2006. Shri Gupta claimed that the Bank's Balance Sheet as on
March 2006 is absolutely clean.
There has been an improvement in the asset quality of the
Bank. The Gross NPA ratio has declined from 6.14% in March 2005 to 4.66% in March 2006.
The Net NPA ratio has also declined from 2.43% in March 2005 to 1.95% in March 2006. The
Bank could recover in cash a sum of Rs 183 crore (Rs 145 crore in 2004-05) from Non
Performing Assets under the year under review.
Speaking about the IT initiatives, Shri Gupta informed that
the Bank is in the process of implementing Core Banking Solution (CBS) which envisages
covering 600 branches or 84% of its business, in phases. The first such branch roll-out is
expected by the end of this calendar year. The Bank is also in the process of introducing
Internet Banking to expand its reach to customers which is expected to be launched by
end-June 2006. The Bank has initiated steps to establish its own file Private Network
backbone to offer its customers secure and reliable network based banking products.
As many as 85 branches of the Bank are under Real Time Gross
Settlement (RTGS) as on March 2006 which enables the Bank to provide inter bank fund
transfer facility to its customers, in addition to its own inter bank settlement. Bank's
ATM network has increased to 120 as on March 2006. Besides, the Bank has a tie-up
arrangement under CASHTREE with eleven more banks through which its customers can access
more than 2000 ATMs.
During the year under review, the Bank has opened 10 new
branches, thereby taking its branch network to 1318, besides 65 Extension Counters.
Dated, the 5th May 2006 (Friday)
Kolkata |
