Union Bank of India Posts Healthy Numbers
Priyanka Kumari / 09 May 2013
Union Bank of India announced a good set of numbers for its financial year ended 2013, with its interest earnings and profits moving up.
Union Bank of India (UNI) announced a good set of numbers for its financial year ended 2013, and the stock price closed up by 1.42% on Thursday, May 9.
On a consolidated basis, the bank's interest earned from lending rose by 19% to Rs 25168.53 crore against that of Rs 21152.48 crore in the previous fiscal. This rise is mainly on account of the rise in interest on advances (grew 19% to Rs 19140 crore), followed by a 25% growth in interest earned on its investments (to Rs 5714.86 crore). However, the interest earned from funds kept with the RBI and other banks declined by 40% to Rs 198.61 crore in FY13. The bank’s Other Income increased in this period to Rs 2868 crore, marking an addition of Rs 552 crore.
The retail segment (up 24% to Rs 9183) was the major revenue driver for the bank, followed by wholesale banking (up 13% to Rs 11411 crore) and treasury operations (up 20% to Rs 6873 crore).
During FY13, the operating expenditure increased by 23% to Rs 22481 crore on a YoY basis. Interest expenses, which form a major chunk of this, saw a huge jump of 23.5% to Rs 17575 crore against Rs 14230 crore in FY12. The expenses on workforce and other operating expenditure climbed by 12% and 39% to Rs 2794 crore to Rs 2111.53 crore respectively.
Further, the operating profits before provisions saw a growth of Rs 333 crore to Rs 5555.72 crore. The provisions and contingencies remained flat in FY13, registering a marginal decline of 0.91% to Rs 2518 crore as compared to the previous fiscal.
During the same period, the bank’s Profit Before Tax stood at Rs 3037.5 crore, showing a growth of 13%. The Profit After Tax went up to Rs 2131 crore in FY13 from Rs 1756 crore in FY12, a 21% YoY growth. The tax expenses declined by 2% to Rs 906.36 crore.
In Q4FY13, UNI's Gross Non-Performing Assets (NPAs) declined by 3 basis points to 2.98% on a yearly basis. The Net NPAs decreased by 9 basis points to 1.61% during the same period.
Moreover, the government holding in the company increased to 57.89% in FY2013 from the previous 54.35%. The bank also recommended a dividend of Rs 8 per share for its shareholders for the said fiscal.
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