Press
Release
Performance Highlights For The Year Ended 31st March, 2007
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United Bank of India's
business grows by 32.3% to Rs 59,808 crore.
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Deposits grow by 27.1% to Rs
37,167 crore.
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Advances grow by 41.8% to Rs
22,641 crore.
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Net Profit goes up 30.7%
(Y-o-Y).
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Pays Rs 45.97 crore Dividend
to the Government.
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Gross NPA goes down to
3.60%.
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Net NPA goes down to 1.50%.
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22% business covered under
Core Banking Solution.
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, 2007.
While announcing the financial results for the FY 2006-07 at
Bank's headquarters in Kolkata today, Shri P.K. Gupta, CMD of the
Bank, said that an amount of Rs. 45.97 crore has been declared as
Dividend to be paid to the Government which is the same as last
year.
The Bank has achieved a total business figure of Rs 59,808 crore,
a rise of 32.3% over the preceding financial year and has far
exceeded its business target of Rs 55,000 crore. The Bank's total
Deposits have increased from Rs 29,250 crore as on March 2006 to
Rs 37,167 crore, registering a healthy growth of 27.1% whereas the
Gross Advances have increased from Rs 15,963 crore to Rs 22,643
crore registering a robust growth of 41.8% during the same period.
Consequently, the Credit Deposit Ratio has moved up from
54.6% to 60.9% as on March 2007.
Bank's Net Profit has gone up by 30.7% from Rs 204.57 crore to Rs
267.28 crore. The profit after providing for proposed Dividend and
tax thereon has been, inter-alia, appropriated towards Statutory
Reserve (Rs 66.82 crore) and Revenue Reserve (Rs 141.60
crore).
The Operating Profit of the Bank has increased from Rs
643.85 crore as on March 2006 to Rs 719.10 crore as on March 2007
registering a growth of 11.7%. Q4 over Q4, the same has gone up by
45.7% from Rs 153.19 crore to Rs 223.13 crore.
The Tangible Net Worth of the Bank has improved from Rs
1,828.80 crore as on March 2006 to Rs 2,415.29 crore as on March
2007 registering a growth of 32.07%. During the year 2006-07, the
Bank has raised Rs 300 crore as Tier II Capital. The Bank's
Capital Adequacy Ratio (CRAR) stood at a healthy level of
12.02% as on March 2007.
Shri Gupta said that the Priority Sector Advances also
show a healthy growth of 32.3% and are at Rs 9,405 crore as on 31st
March, 2007. Agriculture advance has gone up by 16.6% to
reach at the level of Rs 2,713 crore; the credit to SSI Sector
has witnessed a growth of 21.3% to reach at Rs 1,581 crore. Bank's
Retail Credit has increased from Rs 2,833 crore as on March
2006 to Rs 4,536 crore as on March 2007 registering a growth of
60.1%. Advance under Education Loan has increased by 48% from
Rs 152 crore as on March 2006 to Rs 225 crore as on March 2007.
The Asset quality of the Bank has improved. The Gross
NPA ratio has declined from 4.66% to 3.60% and the Net
NPA Ratio has declined from 1.95% in March 2006 to 1.50%
in March 2007. During the year, the Bank has sold 17 Non-Performing
Assets having Book Value of Rs 75.37 crore to ARCIL.
Elaborating on the IT initiatives taken by the Bank, Shri Gupta
informed about the much awaited roll-out of Core Banking Solution
(CBS). Within a period of five weeks from the date of rolling
out in January 2007, about 22% of the Bank's total business has been
migrated to this new platform. The Bank envisages covering 600
branches representing 84% of its business in phases, under CBS. The
Bank has already introduced Internet Banking which was launched by
the Hon'ble Union Finance Minister Shri P. Chidambaram on 6th
December 2006. The Bank has established Virtual Private Network (VPN)
backbone for its various delivery channels and 409 Branches have
already been covered under the Network. Shri Gupta further informed
that as many as 111 branches are under RTGS (Real Time Gross
Settlement) through which Bank's customers have been provided
inter-bank fund transfer facility.
The Bank has opened 7 branches during the year taking its network
of branches to 1325. The Bank has plans to open 41 more branches
before June 2007. Bank's own ATM network has gone up to 144 as on
March 2007. Besides, the Bank has a tie-up arrangement under CASH
TREE with 11 more Banks through which its customers can access more
than 3000 ATMs.
During the current financial year, the Bank plans to give a big
thrust to its non-interest income by starting Cash Management and
Depository Services, besides maintaining its share of Government
business and distribution of third party products.
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