PERFORMANCE -FY 2010 VS FY 2009
Saturday, May 8, 2010
UNION BANK OF INDIA - ANOTHER WINNER AMONG PSBs
Union Bank of India
UNION BANK OF INDIA has performed quite well in FY 2010 compared to FY 2009.
Total Income has increased to Rs.15277.42 crores from Rs.13371.93 Cr, an increase of Rs.1905 cr over the previous year, an increase of 14.25 % over previous year.
Net Profit has increased to Rs. 2074.92 cr from Rs.1726.55 Cr, an increase of Rs.348 cr, or 20.15 % over the previous year.
% of Gross/Net NPA has however increased (slightly) adversely to 0.81 from last year’s 0.34
Return on Assets is approximately the same at 1.25 against 1.27 last year.
Capital Adequacy Ratio has grown to a healthy 12.51 from 12.01 last year.
Dividend (%) has therefore been enhanced to 55% from 50% last year.
Over all, the growth has been reasonably healthy and steady for Union bank of India in FY 2010.
The Bank is aiming at a deposits Growth of 22% and an Advances growth of 25 % in FY2011. It wants to increase its CASA RATIO 35 % By March 2012.
Its Basic EPS has grown in FY 11to Rs.41.08 from Rs. 34.18 over the previous year. Current Market price is Rs.292. Thus, the PE Ratio works out to 7.11.
Banking sector has in general performed very well in last 2 years - specially in current year - with 2 or 3 exceptions. Union Bank is also in the WINNERS list.
Market perception about PSBs has to change after their consistent performances - which is by far better than many private banks and other private sector companies.
Their Dividend record also is quite excellent.
In a normal market, a PE of 10 - 12 is not at all unreasonable for the winners among PSBs . Judging by this parameter, Union bank deserves Higher valuations. In any case, its performances in coming quarters is bound to be much better.
QUARTERLY PERFORMANCE :
Net Profit (+) has been growing in a very healthy way over the last 5 quarters as can be seen from the figures : R.59350 lakhs in q/e 03/10; Rs. 53413 lakhs in q/e 12/09; Rs. 50510 lakhs in q/e 09/09; Rs. 44219 lakhs in q/e 06/09; Rs.46506 lakhs in q/e 03/09
Basic EPS has also grown consistently over same period to Rs.11.75 in q/e 03/10; Rs.10.57 in q/e 12/09; Rs.10 in q/e 09/09; Rs. 8.75 in q/e 06/09; Rs. 9.21 in q/e 03/09.
NIM has increased to 3.39 in q/e 03/10 from 2.69 in q/e 03/09
Thus, quarterly performance has also been quite good.
RESULTS - NUMBERS
Result Type Audited, Cumulative, Non-Consolidated
Description :: FY 10 (Rs. in lakhs) :: FY 09(Rs. in lakhs)
Interest/Discount on Advances/Bills::969636 :: 889336
Income on Investments :: 348230 :: 283086
Interest on Balances With RBI :: 5533 :: 6801
Others :: 6869 :: 9715
Interest Earned :: 1330268 :: 1188938
Other Income :: 197474 :: 148255
Total Income :: 1527742 :: 1337193
Interest Expended :: 911027 :: 807581
Employees cost :: 135449 :: 115188
Other Operating Expenses :: 115335 :: 106224
Operating Expenses 250784 221412
Total Expenditure excluding provisions:: 1161811 :: 1028993
Operating Profit before provisions :: 365931 :: 308200
Provisions (other than tax) :: 82639 :: 73745
P B T :: 283292 :: 234455
Tax Expense :: 75800 :: 61800
P A T :: 207492 :: 172655
Net Profit :: 207492 :: 172655
Dividend (%) :: 55 :: 50
Face Value (in Rs.) :: 10 :: 10
Paid-up Equity :: 50512 :: 50512
Reserves :: 830269 :: 660835
Capital Adequacy Ratio :: 12.51 :: 12.01
Basic EPS :: (in Rs.) :: 41.08 :: 34.18
Gross/Net NPA :: 96533 :: 32594
% of Gross/Net NPA :: 0.81 :: 0.34
Return on Assets :: 1.25 :: 1.27
TO THE EXCHANGE
06-05-2010 Union Bank Of India has informed the Exchange that the Board of Directors of the bank at its meeting held on May 06, 2010 have proposed dividend of 55% i.e. Rs. 5.50/- per share for the financial year 2009-10. -
06-05-2010 Union Bank of India has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Interest earned of Rs. 356167 lacs for the quarter ending on 31-MAR-2010 against Rs. 328970 lacs for the quarter ending on 31-MAR-2009. Interest expended of Rs. 216555 lacs for the quarter ending on 31-MAR-2010 against Rs. 236332 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 59350 lacs for the quarter ending on 31-MAR-2010 against Rs. 46506 lacs for the quarter ending on 31-MAR-2009. -
06-05-2010 Union Bank of India has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 1330268 lacs for the year ending on 31-MAR-2010 against Rs. 1188938 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 911027 lacs for the year ending on 31-MAR-2010 against Rs. 807581 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 207492 lacs for the year ending on 31-MAR-2010 against Rs. 172655 lacs for the year ending on 31-MAR-2009.