The bank announced a 34.73% increase in its net profit to Rs 225 crore for the quarter ended June as against Rs 167 crore a year ago.
MUMBAI: Union Bank of India has decided to follow its peers in cutting deposit rates. Soon after Punjab National Bank, Indian Bank, Kotak Mahindra Bank and Corporation Bank slashed rates, Union Bank on Monday announced a 50 basis points cut in rates on deposits with a 1-3 year tenure to 9%.
“Deposit rates were aggressively priced. Now, with a slide in inflation and improvement in liquidity conditions, a reduction in deposit rates is logical,” said M V Nair, chairman and managing director, Union Bank of India. The reduction will be effective from 1 August 2007.
The bank announced a 34.73% increase in its net profit to Rs 225 crore for the quarter ended June as against Rs 167 crore a year ago. Total deposits rose 13.68% to Rs 86,984 crore, while total business climbed to Rs 1,50,692 crore.
“We are aiming at a business volume of Rs 1,85,000 crore by the end of March 2008,” Nair said adding that, of this, Rs 1,05,000 crore will be deposits and the remaining by way of advances.
“SMEs, retail and agri-business are the major drivers to our business growth,” Nair said. SME business has contributed 31.5% to the profit while 24% is from agriculture.
The bank also plans to raise Rs 2,400 crore over the next five years by way of subordinated bonds and other instruments.
Net NPAs slid from 1.22% as on June 30, 2006, to 0.78%. “We are targeting our net NPAs to fall below 0.50% by the end of March 2008,” R S Reddy, executive director, Union Bank, said.
Going global is also on the cards. The bank has received an approval from the Central Bank of United Arab Emirates to open a representative office in Abu Dhabi by 2007.
“We will also open in a branch in Hong Kong in the next two months along with a representative office in Beijing,” Reddy said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}