Financial Daily from THE HINDU group of publications
Saturday, Apr 29, 2006
Financial Daily from THE HINDU group of publications Saturday, Apr 29, 2006 |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks Union Bank net down 65 pc Our Bureau
MR M.V. NAIR (left), CMD, Union Bank of India, and Mr K. Rathnakar, ED, at a press meet in Mumbai on Friday. - Shashi Ashiwal
Mumbai , April 28 Union Bank of India saw a fall of 65 per cent in its net profit to Rs 144.61 crore for the quarter ended March 31, 2006 against Rs 239 crore last year, due to fall in profit on sale of investments and tax outgo. Last year the bank had a tax benefit of Rs 107 crore, which was an extraordinary income and pushed up the bank's profits. As against this, the bank had to pay Rs 219 crore as tax, said Mr M.V. Nair, Chairman and Managing Director, Union Bank of India.The board has recommended a dividend of 35 per cent. For the fourth quarter, the total income was Rs 1,784.42 crore (Rs 1,500.86 crore). Net Interest Income (NII) increased to Rs 587.87 crore (Rs 561.49 crore). Other income was Rs 212.15 crore (Rs 178.81 crore). For the full year the net profit was Rs 675.18 crore, down 6.12 per cent from Rs 719.06 crore. Total income was Rs 6,488.81 crore (Rs 5,735.89 crore). NII was Rs 2,373.38 crore (Rs 2,064.55 crore). Other income fell to Rs 625.1 crore (Rs 766.1 crore).The bank's profit on sale of investments was Rs 95 core, lower than Rs 260 crore last year. Capital Adequacy Ratio (CAR) fell to 11.39 per cent from 12.09 per cent. The ratio of net non-performing assets fell to 1.56 per cent (2.64 per cent). "Our estimation of growth of assets shows that we can maintain the CAR at the current levels. We have a headroom of five per cent to raise Tier I capital and we also have headroom in Tier II," Mr Nair said.
Union Bank is likely to take a decision on its interest rates in the next 10 days, Mr Nair said.
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