Union Bank Q4 results flat

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Union Bank Q4 results flat
On Friday, Union Bank of India reported its financials for the year and quarter ended March 31, 2011.The bank"s results were not very encouraging and could not match up to market estimates.

The bank"s net interest income for the fiscal increased by around 48 per cent to Rs. 6,216 from an income of Rs. 4,192 crore for the prior year. For the quarter, the net interest income stood at Rs. 1,716 crore as against Rs. 1,396 crore in the comparable period last year, registering a rise of around 23 per cent.

Net profit for the fiscal rose by 0.3 per cent to Rs. 2,082 crorefrom Rs. 2,075 crore in 2010.For the Q4"11, the bank"s net profit increased marginally to Rs. 597 crore in comparison from Rs. 594 crore for the corresponding quarter in the year-ago period.

The bank"s gross non-performing assets stood atRs. 362,282 lakh during 2011.The gross NPA ratio increased to 2.37 per centfrom 2.20 per cent a year ago. Total Capital Adequacy Ratio as at March 31, 2011 (computed as per Basel II guidelines) remained at 12.95 per cent.

Total asset-book increased to Rs. 23,598,445lakh as on March 31, 2011 from Rs 19,516,184lakh as on March 31, 2010. A further analysis showed that the deposits for the bank increased to Rs 20,246,129 lakh from Rs. 17,003,947 lakh.

Also the bank added 0.54 million customers in the quarter. In addition, the bank recommended a dividend of Rs. 8 per share for the year ended March 31, 2011, subject to the approval from the Reserve Bank of India.

However, the bank is quite optimistic about its future outlook, it is aiming for a business growth and increased margins on the back its strategy to become the number one retail bank in customer service excellence and is also revamping its HR management.

Additionally, by the next fiscal it expects its NPA ratio to come down to 1.85 per cent and delinquency ratio at 1.25 per cent.

On Friday at 12:44 P.M IST,on the Bombay Stock Exchange (BSE), stocks of the firm were trading at Rs. 304.14,up by 4.66 per cent or by Rs. 13.55. The stock had seen an intraday high of Rs 307.00 and a low of Rs. 290.45, till then.

In related news, earlier last month, it was reported that the bank was planning Union raise around $500 million by the way of medium-term notes in order to fulfil funding needs of its overseas business.

Read more about: results, union bank of india, bse
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