Tuesday, January 25, 2011

UNION BANK OF INDIA = RESULTS FOR Q3 FY 2011 = QTR ENDING DECEMBER 2010 = NET PROFIT UP BY 8.51 % YOY


UNION BANK OF INDIA

Q3 FY 2011 RESULTS
QTR ENDING DECEMBER, 2010




Total deposits : grew 24% to Rs. 186655 cr as on 31st Dec. 2010 from Rs. 151085 cr as on 31st December 2009. The Bank's CASA deposits have increased by 27.11% to Rs. 62106 cr as on 31st December'10 from Rs. 48861 cr in the previous year. CASA to total deposits improved 93 bps at 33.27%. Global Deposits in Q3 FY'11 grew by 23.54% to Rs. 186655 cr from Rs. 151085 cr in the previous year.

Gross advances : reached Rs. 133787 cr in Q/E Dec. 2010, - an increase of 26% over previous year. MSME advances grew by 15% to Rs. 23705 cr during the quarter from Rs. 20630 cr in the corresponding previous year. Bank's retail advances, grew by 29% Y-o-Y to Rs. 15219 cr from Rs. 11843 cr in the previous year. Agriculture increased 10% Y-o-Y to Rs. 19252 cr from Rs. 17535 cr in the previous year. Global Advances in Q3 FY'11 increased to Rs. 133787 cr from Rs. 106534 cr in the previous year, a growth of 25.58%.

INTEREST ON ADVANCES : is Rs.3064 cr – up by 10.4% from previous qtr (Q2) and  up by 24.96% from the corresponding qtr Q3 of FY 2010.

INCOME ON INVESTMENTS : is Rs.1074 Cr – up by 9% from Q2 FY11 and up by 32.03% from Q3 FY10.

Net Interest Income (Interest earned minus expended) : is Rs.1616 Cr – up by 5.21% from Q2; and up by 51.77% from Q3 FY 10.

The Net Interest Margin (NIM) stands at 3.44% for the quarter ended December'10 as against 2.77% in the corresponding period of the previous year. The bank expects NIM to reach around 3.20% to 3.25% by March'11 end.

TOTAL INCOME :  is Rs.4693 Cr – up by 5.18% from Q2 and Up by 24.87% from Q3 FY 10. The improvement in Income streams is impressive.

OPERATING PROFIT ; is Rs.1261 Cr – up by 11.54% from Q2 FY11 and up by 37.94% from Q3 FY10. At OPT level, the improvement is very good.

NET PROFIT : is Rs.580 cr – up by 91.03% from Q2 FY11 and up by 8.51% from Q3 FY 10.NPT increase has come down to 8.51% YOY due to higher provisions YOY.

Capital Adequacy Ratio is adequate at 11.88, though down from previous qtrs.

Basic EPS : is Rs.11.46 – up from Rs.6.01 in Q2 FY 11 and up from  Rs.10.57 in Q3 FY10.

Return on Assets : is  reasonable at 1.16.

% of Gross/Net NPA       is 1.21 – compared to 1.18 in Q2 FY11 and compared to 0.58 in Q3 FY 10. This reflects slightly lower asset quality.

PROVISIONS :   is Rs.399.96 cr – compared to Rs.598.89 cr in Q2 FY 11 and compared to Rs.161.09 cr in Q3 FY 10.

Over all, the performance of Union Bank is impressive and likely to improve in coming qtrs.


Guidance:
  • The Bank aims for a deposits growth of approx. 20% and advances growth of 25% for 2010-11.
  • Bank targets CASA Ratio of 35% by March 2012.
  • Return on Equity to be 22.00% and Return on Average Assets to be 1.17% by March 2011.
  • Transaction through electronic mode to reach 50% of total transactions by March 2011.
  • Bank will endeavour to reign in Gross NPAs below 2.40% by Mar'11.


RESULTS TABLE :

UNION BANK
31-Dec-10
30-Sep-10
30-Jun-10
31-Mar-10
31-Dec-09
Interest on Advances
306438
277579
273351
255013
245228
DIF %1
3064
10.4
12.1
20.17
24.96
Income on Investments
107383
98512
91020
96589
81333
DIF %2
1074
9
17.98
11.18
32.03
Income on Balances With RBI
3076
5612
1424
765
1448
Others
3049
13521
2772
3800
1346
Interest Earned
419946
395224
368567
356167
329355
Other Income
49360
50964
43499
49253
46477
Total Income
469306
446188
412066
405420
375832
DIF %3
4693
5.18
13.89
15.76
24.87
Interest Expended
258364
241640
233764
216555
222888
NII
161582
153584
134803
139612
106467
DIF %4
1616
5.21
19.87
15.74
51.77
Employees Cost
52020
59194
43497
42360
32450
Other Operatng Expenses
32810
32291
30436
31753
29072
Operatng Expenses
84830
91485
73933
74113
61522
Operating Profit
126112
113063
104369
114752
91422
DIF %5
1261
11.54
20.83
9.9
37.94
Provisions
39996
59889
19727
34002
16109
Tax Expense
28159
22835
24500
21400
21900
Net Profit
57957
30339
60142
59350
53413
DIF %6
580
91.03
-3.63
-2.35
8.51
Face Value (in Rs.)
10
10
10
10
0
Paid-up Equity
50512
50512
50512
50512
50512
Dividend (%)
-
-
-
55
-
Capital Adequacy Ratio
11.88
12.53
12.59
12.51
13.46
Basic EPS
11.46
6.01
11.91
11.75
10.57
% of Gross/Net NPA
1.21
1.18
0.94
0.81
0.58
Return on Assets
1.16
0.64
1.22
1.34
1.29
Public holding (%)
44.57
44.57
44.57
44.57
44.57

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