Press Release
Performance Highlights for the year ended 31st March, 2008
· Business crosses Rs 75,000 crore.
· Deposits up by 26.4%.
· Advances up by 24.3%.
· Net Profit rises to Rs 319 crore.
· Gross NPAs come down to 2.70%.
· Net NPAs decline to 1.10%.
· Pays Rs 45.97 crore as dividend to the Central Government.
· 70% business covered under Core Banking Solution.
On 24th April 2008, the Board of Directors of the Bank took on record the Annual Financial Results for the year ended 31st March, 2008.
While announcing the financial results for the FY 2007-08 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. This was the third consecutive year that the Bank has paid dividend to the Government since year 2005-06.
As on 31st March 2008, the Banks’
Business has crossed an important milestone of Rs 75,000 crore by reaching at the level of Rs 75,123 crore. The
Deposits registered an annual growth of 26.4% to reach at Rs 46,971 crore whereas the
Advances grew by 24.3% to reach at Rs 28,152 crore. The Credit Deposit Ratio stood at 60%. Shri Gupta informed that United Bank of India has shown a significant improvement in its Business performance over a period of three years from March 2005 to Mach 2008. The Total Business of the Bank has clocked a
growth of 102% from Rs 37,187 crore as on Mach 2005 to Rs 75,123 crore as on Mach 2008. During the same period, the
Deposits have grown by 85.3% from Rs 25,348 crore to Rs 46,971 crore whereas the
Advances have grown by 137.8% from Rs 11,839 crore to Rs 28,152 crore. As a result, the
Credit Deposit Ratio has improved fro 46.7% to 60% during the three-year period. Shri Gupta highlighted the fact that there has been a perceptible improvement in the quality of
Credit Portfolio of the Bank between March 2005 & March 2008. The
Gross NPA Ratio has sharply declined from 6.14% as on March 2005 to 4.66% as on March 2006 to 3.60% as on March 2007 and further to 2.70% as on March 2008. Equally impressive improvement was registered in the
Net NPA Ratio which has declined from 2.43% as on Mach 2005 to 1.95% as on March 2006 to 1.50% as on March 2007 and further to 1.10% as on March 2008. The fact that despite fresh generation of NPAs aggregating Rs 987 crore during the three-year period ended 31st March 2008, the
Gross NPAs in absolute figure have risen by just Rs 35 crore from Rs 726 crore as on mach 2005 to Rs 761 crore as on March 2008 indicate that the Bank’s efforts on NPA Management have been quite effective. In order to boost up the financial strength of the Bank’s Balance Sheet, the bank has created a
Floating Provision of Rs 161 crore (Rs 110 crore during 2007-08) against NPAs in accordance with the recent RBI guidelines. Consequently, NPA provision as on March 2008 stood at Rs 455 crore with
Coverage Ratio of 59.8%. The Slippage Ratio, i.e. Ratio of Fresh NPAs to Opening Standard Assets has improved to 1.49% during the year 2007-08 as against 2.66% during the previous year. The Bank’s
Priority Sector Advances stood at Rs 9,601 crore accounting for 42.4% of the Adjusted Net Bank Credit against national target of 40%. The
Retail Credit has risen by 33.4% from Rs 5,364 crore as on March 2007 to Rs 7,158 crore as on March 2008. Within the Retail Credit, the
Housing Loans have registered a growth of 36.2% from Rs 3046 crore as on March 2007 to Rs 4148 crore as on March 2008 and
Education Loan by 23.1% from Rs 225 crore to Rs 277 crore during the same period. Share of Retail Credit in Total Credit has gone up from 23.7% as on March 2007 to 25.4% as on March 2008.
Speaking about Profitability, Shri Gupta informed that the Bank’s
Net Profit has gone up by 19.5% from Rs 267.28 crore during 2006-07 to Rs 318.95 crore during 2007-08.
Net Profit has been arrived at after providing for a liability of Rs 82 crore under AS-15, depreciation on Investments to the tune of Rs 73 crore and a Floating Provision of Rs 110 crore. The
Net worth of the Bank has risen significantly from Rs 1596 crore as on March 2005 to Rs 2661 crore as on March 2008, registering a growth of 66.7% over a period of 3 years. The Bank’s
Capital Adequacy Ratio stands at a comfortable level of 11.88% as on March 2008. The
Tier-I Capital accounts for 6.74% whereas the Tier-II Capital accounts for 5.14%. Speaking about
Productivity, Shri Gupta informed that the Business Per Branch
has been showing consistent improvement year-over-year. From Rs 28.39 crore as on Mach 2005, the
Business Per Branch has improved to Rs 34.30 crore as on March 2006 to Rs 45.14 crore as on March 2007 and further to Rs 53.62 crore as on March 2008. The
Business Per Employee has also shown an equally impressive growth from Rs 2.08 crore as on March 2005 to Rs 2.54 crore as on March 2006 to Rs 3.50 crore as on March 2007, and further to Rs 4.63 crore as on March 2008. The Bank has been making sincere endeavours to discharge its obligations in relation to the
Agenda of Financial Inclusion. The Bank has received Awards from Khadi & Village Industries Board for ranking
First in Lending under Rural Employment Generation Programme (REGP) for Eastern and North-Eastern Zones for the year 2006-07. The Bank has set up
Rural Development & Self Employment Training Institutes (RUDSETIs) at Rajpur, 24-Parganas (South) in August 2007 and at Belur, Howrah in March 2008. The Foundation for the third RUDSETI at Amarkanan, Bankura (West Bengal) has also been laid on 14th April 2008. Elaborating on the progress made on the
Technology front, Shri Gupta informed that the Bank has rolled out
Core Banking Solution (CBS) at 379 of its branches covering 70% of business in line with its Plan in this regard. The Bank has 178 ATMs of its own, although its customers can use more than 20,000 ATMs under NFS Network and CASHTREE arrangement. The Bank provides
Internet Banking facility, christened as UNITED ONLINE at 250 branches along with the facility of e-Payment of Service Tax and Excise Duties, etc. The Bank’w own
Virtual Private Network now covers 730 branches as against 409 branches as on March 2007. The
Real Time Gross Settlement (RTGS) is available in as many as 133 branches. With a view to attaining Pan-India presence, the Bank has expanded its branch network which stood at 1401 as on March 2008 as against 1325 as on March 2007. The Bank expects to open 65 more branches to increase its network to 1466 branches by March 2009. To augment its
Non Interest Income which has registered an impressive growth of 33.9% from Rs 347.68 crore during the year 2006-07 to Rs 465.49 crore during the year under review, the Bank will continue to leverage its network for
distribution of third party products, like bancassurance (Life & Non-Life), Mutual Funds and Government business, etc. Under bancassurance, the Bank has introduced a number of
new customized products, such as United Child Solutions and
United Health Solutions in collaboration with Tata-AIG Life Insurance Company Ltd. and
Silver Health Scheme in collaboration with Bajaj Allianz. The Bank has already launched its Depository Services under the brand name,
United Demat. The Bank has also launched its Cash Management Services, viz.
United Global Cash Management Services as on 29th March 2008 for its corporate and institutional customers.
Speaking about the plan for the current financial year, i.e. 2008-09, Shri Gupta informed that it envisages a growth of 20% in its
Total Business to reach at Rs 90,000 crore. Within the Total Business, the
Deposits were expected to grow by 18% to reach at the level of Rs 55,500 crore and
Advances by 22% to reach at the level of Rs 34,500 crore. The Bank intends to add another 65 Branches to its network to take it to 1466 from 1401 as on March 2008. The Bank would aggressively pursue the roll-out of CBS Branches so as to put 900 Branches covering 92% of its business under Core Banking Solution by March 2009. The Virtual Private Network would cover 950 branches as against 730 as on March 2008, whereas the number of ATMs would go up to 225 as against 178 at present.
Dated, 25th April 2008 |
