Press Reports
Highlights of performance for the 9 months period ended 31st December 2007
• Net Profit jumps by 32.5% y-o-y
• Total Business grows y-o-y by 21.0 %.
• Deposits grow y-o-y by 23.0 %.
• Advances register a growth of 17.7 % y-o-y.
• Capital Adequacy Ratio improved to 13.63 %.
• Non Interest Income grows by 45.7% y-o-y.
On 30th January ,2008 , the Board of Directors of the Bank took on
record the financial results for the nine-month period ended 31st December 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 65,554 crore registering a y-o-y growth of 21.0%. Adding further, he
mentioned that the Deposits registered an annualized growth of 23.0% and stood at
Rs 41,203 crore as on 31st December 2007 whereas the Advances stood at
Rs 24351 crore with a growth of 17.7%. The Credit-Deposit Ratio stood at
59.1% . Bank's Priority Sector Advances have gone up from Rs 7676 crore as
of December 2006 to Rs 9620 crore as of December 2007 with a growth of 25.3%.
Retail Credit has risen by 70.4% from Rs 3702 crore as on December 2006 to Rs 6308
crore as on December 2007. Share of Retail Credit in total Credit has gone up from
17.9% to 25.9% during the same period. Under Retail Credit, for the loans under
Housing Sector the growth has been 138.7% while Education loans have grown by
26.2% on a y-o-y basis. Bank's Interest Income registered a growth of
28.9% and increased to Rs 2633.78 crore during April-December 2007 from
Rs 2043.12 crore during the
corresponding period of 2006-07 . Non Interest Income has grown by 45.7% to
Rs 295.11 crore from Rs 202.56 crore during the same period. The operating
expenses grew by 14 .7% from Rs 547.55 crore during April - December 2006 to
Rs 628.13 crore during April - December 2007. Bank's
Net Profit has moved up from Rs 231.84 crore during April-
December 2006 to Rs 307.21 crore during April-December 2007. At the end of
December 2007 the annualized Return on Assets stood at 0.89 % as against 0.73%
during the year 2006-07. Bank's Capital Adequacy Ratio has further improved to
13.63% as on
end-December 2007 as against 12.02% as on end-March 2007. The Tier-I Capital
accounts for 7.83% (7.72% as on March '07) whereas Tier-II Capital accounts for
5.80%(4.30% as on March '07). In the area of
Non-Performing Assets, Shri Gupta informed that as
on 31st December 2007, the ratio of Gross NPAs stood at 3.85% ( 3.60% as of March
2007) while the Net NPA ratio worked out to 1.30% (1.50% as of March 2007). The growth in business had a positive impact on Bank's productivity
and profitability ratios. The Business Per Branch has improved from Rs 41.08 crore
as on December 2006 to Rs 47.16 crore as on December 2007. Net Profit Per Branch
has improved from Rs 17.58 lac as on December 2006 to Rs 22.10 lac as on December
2007. On the technology front, Shri Gupta informed that the Bank is going
ahead with roll-out of Core Banking Solution (CBS) as per schedule . At the
end of December, 2007, 234 branches were operating on CBS platform which has
since increased to 282 branches accounting for over 62% of Bank’s business. The
Bank has plans to put 300 plus of its branches under CBS covering 2/3 rd of its
business by March 2008. The Bank had 161 ATMs of its own as on December 2007.
The Bank has entered into a tie-up arrangement with NFS network in December 2007
under which there are 29 member banks. This, along with the CASHTREE arrangement with 12 other banks provides the customers of the Bank access to more
than 20000 ATMs. To bring in more customers under its ATM fold ,the Bank has
started issuing pre-activated cards through 10 CBS branches. Bank's Internet facility
UNITED ONLINE is available at 249 branches. Bank's own Virtual Private
Network (VPN) now covers 703 offices which is likely to go up further to 750 offices
by March 2008. Shri Gupta also informed that as many as 128 branches are offering
fast and efficient Inter-Bank Fund Transfer Facility under Real Time Gross
Settlement (RTGS) Scheme. The Bank has opened 65 branches during April-December 2007 ,
taking its network to 1390 at the end of December2007. 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. 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. Under bancassurance a new product
viz.United Child Solutions, a unique children's insurance plan has recently been
launched by Tata AIG for the Bank which will be marketed through the Bank's
branches. Under a tie up arrangement with ECGC, credit insurance cover will be
provided to the exporters . In addition to the existing tie-ups arrangements with UTI
Mutual Fund, HDFC Mutual Fund, Franklin Templeton Investments and ICICI
Prudential for marketing their Mutual Fund products , the Bank has recently gone
for a tie-up with Reliance Mutual Fund for distribution of their products. The Bank
has already launched Depository Services under the brand name United Demat
wherein the Bank has registered with SEBI as a Depository Participant (DP) of
CDSL. Cash Management Services of the Bank are scheduled to be launched by
31.3.08.
Dated, 31st January 2008 |
