Monday, May 14, 2012

Union Bank Q4 profit beats estimates, up 29% at Rs 773 cr


State-owned Union Bank of India on Wednesday reported a forecast beating 29% year-on-year jump in its fourth quarter (Jan-March) net profit at Rs 773 crore, aided by a fall in non-performing assets (NPAs) and a rise in other income component. Net interest income or the difference between interest earned and paid out, rose more than 9% to Rs 1,876 crore.

Analysts on an average had expected net profit at Rs 560 crore and net interest income at Rs 1,873 crore.
However, net profit fell by 14% y-o-y to Rs 1,787 crore for the year ended March 31, 2012. Loan book expanded nearly 18% y-o-y to Rs 1.78 lakh crore. 

During the quarter the gross non-performing ratio improved to 3.01% as against 3.33% recorded in the October-December quarter. Net NPA ratio fell to 1.70% compared with 1.88% in the previous quarter.
The public sector lender made provisions of Rs 517 crore during the fourth quarter as against Rs 973 crore in Q3, FY12. Other income climbed 26% to Rs 755 crore.

The lender's deposits grew at a slower pace at 10% y-o-y at Rs 2.23 lakh crore. The growth in deposits, projected by the Reserve Bank of India for the industry in FY12 was at 14%.

Its capital adequacy ratio stood at 11.85% vs 12.95% (YoY). The bank plans to seek Rs 655 crore capital in FY13 from its key stakeholder - the government of India. 

The bank has proposed to pay a dividend of Rs 8 per share.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

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