Press
Reports
Highlights of performance for the half-year ended 30th september, 2007
- Net Profit jumps by 43.4% y-o-y
- Total Business grows y-o-y by 26.9 %.
- Deposits grow y-o-y by 28.3 %.
- Advances register a growth of 24.5 % y-o-y.
- Capital Adequacy Ratio improves to 13.92 %.
- Return on Assets(annualized) improves to 1.04 %
- Non Interest Income grows by 65.6% y-o-y.
On 15th November 2007, the Board of Directors of the Bank took on record the financial results for the half-year ended 30th September 2007. Shri P.K. Gupta, Chairman & Managing Director of the Bank briefed the Media about the results of the Bank and informed that the Bank has achieved a total business of Rs 61,963 crore clocking a y-o-y growth of 26.9%. Adding further, he mentioned that the Deposits registered an annualized growth of 28.3% and stood at Rs 38,770 crore as on 30th September 2007 whereas the Advances stood at Rs 23,193 crore recording a growth of 24.5%. The Credit-Deposit Ratio stood at 59.8%.
Bank’s Priority Sector Advances have gone up from Rs 7533 crore as of September 2006 to Rs 9587 crore as of September 2007 registering a growth of 27.3%. Retail Credit has risen by 94.7% from Rs 3035 crore as on September 2006 to Rs 5908 crore as on September 2007. Share of Retail Credit in total Credit has gone up from 16.3% to 25.5% during the same period. Under Retail Credit, for the loans under Housing Sector the growth has been 123.2% while Education loans registered a growth of 24.7% on a y-o-y basis.
Bank’s Interest Income registered a growth of 29.3% and increased to Rs 1718.32 crore during April-September 2007 from Rs 1329.43 crore during the corresponding period of 2006-07. Non Interest Income has made an impressive gain of 65.6% to Rs 173.45 crore from Rs 104.75 crore during the same period. The Bank has been able to restrict increase in its operating expenses to 19.3%.
Bank’s Net Profit has gone up by 43.4% from Rs 162.08 crore during April- September 2006 to Rs 232.50 crore during April-September 2007. The annualized Return on Assets has improved to 1.04 % as against 0.73% during the year 2006-07.
Bank’s Capital Adequacy Ratio has improved to 13.92% as on end-September 2007 as against 12.02% as on end-March 2007. The Tier-I Capital accounts for 7.87% (7.72% as on March ’07) whereas Tier-II Capital accounts for 6.05%(4.30% as on March ’07).
Speaking about Non-Performing Assets, Shri Gupta stated that as on 30th September 2007, the ratio of Gross NPAs stood at 4.10% as against 4.37% as on September 2006. The Net NPA ratio worked out to 1.53% as against 1.83% a year ago.
The growth in business had a positive impact on Bank’s productivity and profitability ratios. The Business Per Branch has improved from Rs 37.03 crore as on September 2006 to Rs 45.29 crore as on September 2007. Business Per Employee has also improved from Rs 2.81 crore to Rs 3.75 crore. Net Profit Per Branch has improved from Rs 12.29 lac as on September 2006 to Rs 17.00 lac as on September 2007. Net Profit Per Employee has also improved from Rs 0.93 lac to Rs 1.41 lac during the same period.
On the technology front, Shri Gupta informed that the roll-out of Core Banking Solution (CBS) is going ahead as per schedule . At the end of September , 2007, 140 branches were operating on CBS platform which has since increased to 170 branches accounting for over 50% of Bank’s business.
The Bank has plans to put 300 of its branches under CBS covering 65% of the business by March 2008.The Bank had 157 ATMs of its own as on September 2007. Besides, the Bank’s customers have an access to more than 3,500 ATMs of 12 other Banks under CASHTREE arrangement. Bank’s Internet facility UNITED ONLINE is available in more than 145 branches. Bank’s own Virtual Private Network (VPN) covers 660 links (branches and Regional offices) with a plan to cover 750 links by March 2008.
Shri Gupta informed that as many as 124 branches are offering fast and efficient Inter-Bank Fund Transfer Facility under Real Time Gross Settlement (RTGS) Scheme.
The Bank has opened 43 branches during the first half of 2007-08 , taking its network to 1368 at the end of September 2007. The Bank’s Branch Expansion Plan for the year 2007-08 envisages opening of another 57 branches. Besides, the Bank plans to upgrade 32 of its Extension Counters into full-fledged branches. As on March 2008, the Bank expects its network of branches to cross 1425. During the month of July 2007, the Bank has converted 2 of its branches in Kolkata to All Women Branches and intends to extend this experiment to other Metros also.
Shri Gupta informed that to augment its Non Interest Income, the Bank will continue to leverage its network for distribution of third party products like bancassurance, mutual funds and government business, etc. The Bank has launched Depository Services under the brand name United Demat on 22nd August ,2007. The Bank is shortly going to start Online Trading of Shares under a tie-up arrangement with IDBI Capital Services Lid. Bank has planned to launch its Cash Management Services soon. With a view its interface with customers , the Bank has recently introduced mobile based CRM application United SMILE (Short Messaging Interaction & Live Execution) under partnership with Sybase 365 to deliver SMS based enquiry services for existing and potential customers.
The Bank has signed a MoU on 10th September ,2007 with Everest Bank Limited(EBL) ,Nepal under which 18 designated branches of UBI can issue Demand Drafts to their customers drawn on 21 branches of EBL and all the branches of EBL can issue Demand Drafts on the designated branches of UBI. This agreement provides for a safe and efficient remittance facility to the UBI’s large customer base of Nepalese origin in the Eastern and North –Eastern parts of the country where UBI has a large presence. The Bank is also in process of finalizing an ATM sharing arrangement with Indo-Nepal ATM network managed by Financial Software and System (P) Ltd (FSS),India nd Smart Choice Technologies, Nepal.
Bank’s Rural Development and Self Employment Training Institute (RUDSETI) at Rajpur, 24-Parganas South District in West Bengal launched on 14th September 2007, is doing very well. Already 125 trainees which include 114 women have undergone training which is provided free of cost. In addition, the Bank has also decided to partner with Ramakrishna Mission Samaj Sevak Sikshan Mandir, Belur, Howrah and NABARD at equally shared proportion (1:1:1) for setting up RUDSETI-type of Institution by sharing the expertise and infrastructure of Mission for conducting skills and entrepreneurship development programmes both for farm and non-farm activities.
Dated, the 16th November 2007 (Kolkata)
|
