UNITED BANK OF INDIA = RESULTS =Q4 AND FY 2011 = FOR YEAR ENDED 31ST,MARHC,2011= GOOD PEROFRMANCE = NPT UP 210% IN Q4 FY 11 FROM Q4 FY 10.

United Bank of India

NSE Symbol UNITEDBNK

United Bank of India has performed reasonably well in FY 11 and in Q4 of FY 11.

Interest on Advances : is Rs.1320.01 cr for Q4 FY 11.

The same is up by 9.47% from Q3 FY 11; up by 20.66% from Q2 FY 11; Up by 30.17% from Q1 FY 11; and Up by 36.7% from Q4 FY 10. The total for FY 2011 is Rs.4633.91 cr – which is up by 25.91% from FY 10.

Income on Investments : is Rs.426.07 cr in Q4 FY 11;

The same is up by 1.22% from Q3 FY 11; Up by 3.53% from Q2 FY 11; up by 2.82% from Q1 FY 11; but down by 2.01% from q4 Fy 10. The total for FY 11 is Rs.1672.94 cr – which is up by 8.23% from FY 10.

NII : is Rs.574.80 cr for Q4 FY 11;

The same is  up by 2.69% from Q3 FY 11; Up by 9.23% from Q2 FY 11; Up by 13.02% from Q1 FY 11; and up by 36.25% from Q4 FY 10; The total for FY 2011 is Rs.2169.35 cr – which is up by     55.93% from FY 10.

Chairman and managing director Bhaskar Sen said net interest margin increased to 3.19 per cent in the quarter from 2.28 per cent in the same period last year.

Total Income : is Rs.1986.52 cr for Q4 FY 11;

The same is up by 11.81% from Q3 FY 11; Up by 19.85% from Q2 FY 11; up by 27.52% from Q1 FY 11; and up by 27.39% from Q4 FY 10. Thte  total for FY 11 is Rs.6978.51, which is up by 20.16% from FY 10.

Total Expenditure (excl. provisions) : is Rs.1561.49 cr for Q4 FY 11;

The same is up by 12.34% from Q3 FY 11; up by     19.84% from Q2 Fy 11; Up by 28.29% from Q1 FY 11; and up by 22.74% from Q4 fy 10. The total for FY 11 is Rs.5471.52 cr – which is up by 10.94% from FY 10.

Operating Profit  : is Rs.425.03 cr  for Q4 FY 11;

The same is  up by 9.91% from Q3 FY 11; Up by 19.88% from Q2 FY 11; up by 24.75% from  Q1 FY 11; and  up by a good 47.98% from Q4 FY 10. The total for FY 11 is Rs.1506.99 cr – up by 72.06% from FY 10.

The CASA ratio, stood at a good 40.80 per cent during the quarter.

But, Provisions       has also gone up to Rs.283.80 cr for Q4 FY 11;

This is up by 70.38% from Q3 FY11; up by 30.3% from Q2 FY 11; up by  67.1% from Q1 FY 11; and up by just 0.7% from Q4 FY 10; The total for FY 11 is Rs.838.02 cr- which is up by 80.09% from FY 10.

Profit before tax is Rs.141.23 cr in Q4 FY 11;

The same is down by 35.85% from Q3 FY 11; UP by 3.28% from Q2 FY 11; and again down by 17.34% from Q1 FY 11;  and up by a huge 2523.39% from Q4 FY 11. The total for FY 11 is Rs.668.97 cr, which is up by 62.96% from FY 10.

Due to a lower Tax expense of Rs(-)2 cr , Net Profit in Q4 FY 11 is Rs.143.23 cr – which is still down by 12.2% from Q3 FY 11; and up by 30.52% from Q2 FY 11; up by 32.79% from Q1 FY11; and up by a huge 209.89% from Q4 FY 10. The total for FY 11 is Rs.523.97 cr – up by a good 62.54% from FY 10.

Capital Adequacy Ratio is reasonable at 11.16.

Basic EPS is Rs.3.96 in Q4 FY 11; against Rs.4.62 in Q3 FY 11; Rs.3.47 in Q2 FY 11; Rs.3.41 in Q1 FY 11; and Rs.1.51 in Q4 FY 10. The total EPAS for FY 11 is Rs.14.38 – against a Paltry Rs.2.51 in FY 2010. Face value is Rs.10.

% of Gross/Net NPA is slightly down at 1.42 in Q4 FY 11 against 1.52 in FY 10.

Return on Assets is 0.66.

Total business during FY 11 is Rs 1,31,779 crore, a YoY growth of 18.8 per cent. Deposits grew 14.2 % to Rs 77,845 crore and advances were up 26.1 % to Rs 53,934 crore. The bank targets a total business of Rs 1,56,000 crore in FY 11. UBI, which had 1,597 branches as on March 31,2011 plans to add 70 more in current year.

ANNOUNCEMENTS TO NSE

22-02-2011 the Bank have considered and approved the issue and allotment of equity shares of Rs.10/- each at such price as determined in accordance with the SEBI ICDR Regulations, 2009 aggregating up to Rs.308 Crore. The Company has now informed the Exchange that in terms of Regulations 76(1) of the SEBI (Issue of Capital & Disclosure Requirements) Regulations 2009 (SEBI ICDR Regulations) the issue price for the said Preferential Allotment works out to Rs.110.04 per share (Rupees One Hundred Ten and Paisa Four Only) including a premium of Rs 100.04 per equity share. Accordingly the Bank proposes to issue and allot up to 279,89,821 equity shares to the Government of India on Preferential Basis.

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DENA BANK = RESULTS = Q4 & FY 2011 = NPT FY 11 UP BY 20% OVER FY 10 = FUTURE HIGHLY PROMISING

Dena Bank

NSE Symbol DENABANK

DENA BANK has released good results for the Q4 ending 31^st, March 2011 and year ending 31^st, match 2011.

Interest on Advances : has grown to Rs.1085.08 cr – up by 10.01% from previous qtr ending Dec,2010 and up by 41.31% from the corresponding qtr ending 31^st, March ,2011. The growth in advances quarter after quarter has been good. The total for FY2011 is Rs.3820.43 cr – up by 26.95% from Fy 2010, which is also reasonable.

Income on Investments : has grown to Rs.313.66 cr – up by 4.58% from Previous qtr and up by 15.24% from corresponding qtr. The total for FY 11 is Rs.1192.73 cr – up by 24.26% from GY 10.

Total Income has grown to Rs.1588.26 cr – up by 12.09% from previous qtr and up by 28.28% from corresponding qtr. The total for FY 11 is Rs.5567.37 cr – up by 21.06% from FY 10.

NII is Rs.471.19 cr – up by 1.02% from previous qtr and up by 44.49% from corresponding qtr. The total for FY 11 is Rs.1763.37 cr – up by 60.3% from FY 10. Growth in NII is impressive.

Total Expenditure (excluding provisions) – is Rs.1245.14 cr – up by 13.14% from previous qtr and up by 29.98% from corresponding qtr. The FY 11 total is Rs.4343.58 – up by 15.57% from FY 10.

Operating Profit has gone up to Rs. 343.12 cr – up by 8.43% from previous qtr and up by 22.49% from corresponding qytr. The FY11 total is Rs.1223.79 cr – up by   45.59% from FY 10.

Provisions has gone up to Rs.123.82 cr – up by 44.5% from previous qtr and up by 50.19% from corresponding qtr. The total for FY 11 is Rs.325.20 cr – up by 111.46% from FY 10. Provision coverage Ratio is 74.62% as on 31-3-2011. While NPAs are approximately at same levels, provision coverage has gone up.

Profit before tax is Rs.219.30 – down by 4.96% from previous qtr and up by 10.93% from corresponding qtr. The total for FY 11 is Rs.898.59 cr – up by 30.84% from FY 10.

Net Profit  is Rs.157.00 cr – up by 1.15% from previous qtr; and up by 14.54% from corresponding qtr. The total for FY 11 is Rs.611.63 cr – up by 19.63% from FY 10.

Dividend  declared is 22% fro FY 11 against 20% for FY 10.

Basic EPS for Q4 is Rs.5.46 – up by 0.92% from previous qtr and up by 14.23% from corresponding qtr. The total EPS for FY 11 is Rs.21.26 – up by 19.24% from FY 10. On this EPS, the PE Ratio is 4.89.

Capital Adequacy Ratio reasonable at 11.04. But the Bank is issuing 4,65,65,874  preference shares to GOI at a premium of Rs.105.75. This will enhance the liquid  funds for the Bank – and enhance its profitability in coming quarters. Govt is paying Rs.115.75 per share – whereas current Market price is Rs.104.

As can be analyzed from other details - the expenditure of the bank has gone up to Rs.4343.58 cr in FY 11 from Rs.3758.41 cr in FY 10;i.e., Rs.585.17 cr difference.

From notes to accounts, we find that - 1/5th of additional pension fund liability (Rs.70.78 cr) for serving employees and 100% of additional pension liability for retired employees (Rs.105.75 cr) have been provided in P&L Account for FY 2011. Carried forward liability is Rs.283.14 cr. Likewise, additional gratuity liabilities have been provided in FY 2011 for 15.99 cr and carried forward liability is Rs.63.97 cr. So, it seems that since q1 FY 12 onwards, this burden will come down drastically – the expenditure will come down significantly and profitability will further improve.

Thus while Net Profit has gone up by 14.54% only from corresponding qtr of FY 10; the profitability can improve well in coming quarters for Dena Bank – both on account of lesser expenditure and more liquidity /loanable funds.

% of Gross/Net NPA is 1.22 – and is stable around these levels for a number of quarters.

Return on Assets is reasonable at 0.94.

All these PSU Banks are performing well and improving in each quarter. But for the huge, one time additional pension liability, the Net profit for FY 11 would have been up impressively – for Dena Bank. It is now up by 19.24% only from FY 10. This improvement is likely to be reflected in from Q1 FY 12 onwards. We may watch for the same.

It seems likely – that a similar trend may be reflected for other PSU Banks also – though – their profitability for FY 11 will still be quite good – despite the one time pension liabilities. We need to watch for the same.

Over all – Banking sector as a whole deserves much better valuations in the market – based on their dependability and consistent growth pattern.

DENA BANK	31-Mar-11	31-Dec-10	31-Mar-10	FY 11	FY10
Interest on Advances	108508	98637	76789	382043	300933
Income on Investments	31366	29992	27219	119273	95987
Income on Balances With RBI	467	360	598	1627	2022
Others	408	-	1718	410	2094
Interest Earned	140749	128989	106324	503353	401036
Other Income	18077	12706	17486	53384	58863
Total Income	158826	141695	123810	556737	459899
Interest Expended	93630	82347	73713	327016	291033
NII	47119	46642	32611	176337	110003
Employees Cost	20030	18080	12845	68820	51159
Other Operatng Expenses	10854	9625	9239	38522	33649
Operatng Expenses	30884	27705	22084	107342	84808
Total Expdr excl. prov.	124514	110052	95797	434358	375841
Operating Profit	34312	31643	28013	122379	84058
Provisions	12382	8569	8244	32520	15379
Profit before tax	21930	23074	19769	89859	68679
Tax Expense	6230	7553	6062	28696	17554
Net Profit	15700	15521	13707	61163	51125
Face Value (in Rs.)	10	10	10	10	10
Paid-up Equity	33339	28682	28682	33339	28682
Dividend (%)	-	-	20	22	20
Capital Adequacy Ratio	11.04	11.08	10.65	11.04	10.65
Basic EPS	5.46	5.41	4.78	21.26	17.83
Gross/Net NPA	54895	51914	42753	54895	42753
% of Gross/Net NPA	1.22	1.26	1.21	1.22	1.21
Return on Assets	0.94	0.99	1.02	1	1.01

ANNOUNCEMENTS TO NSE

29-04-2011        recommended a Dividend of 22% i.e. Rs. 2.20 (Rupees Two and Twenty Paise) per equity share of Rs.10/- each for the financial year 2010-2011.

29-04-2011        standalone Results for the year ended on 31-MAR-2011 as follows: Interest earned of Rs. 503353 lacs for the year ending on 31-MAR-2011 against Rs. 401036 lacs for the year ending on 31-MAR-2010. Interest expended of Rs. 327016 lacs for the year ending on 31-MAR-2011 against Rs. 291033 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 61163 lacs for the year ending on 31-MAR-2011 against Rs. 51125 lacs for the year ending on 31-MAR-2010.

07-03-2011        seeking approval of shareholders issuing Equity Shares to the extent of Rs. 539 crore, to Government of India on preferential basis. In this regard, the Bank has further informed that the Board of Directors at its meeting held on March 01, 2011 has approved issuance of 46565874 Equity Shares of face value of Rs. 10/- each for cash at a premium of Rs. 105.75 i.e. at the issue price of Rs. 115.75 as determined in accordance with the SEBI (ICDR) Regulations, 2009 on preferential basis to Government of India.

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