The Hindu : Business : Union Bank of India posts net profit of Rs.675 crores

Online edition of India's National Newspaper
Tuesday, May 02, 2006

Business

Business

Union Bank of India posts net profit of Rs.675 crores

Staff Reporter

Proposes a dividend of 35 per cent for 2005-06

KOCHI: The Union Bank of India has made a net profit of Rs.675 crores during the last financial year, according to the working results announced by the Bank. The Bank had achieved total business to the tune of Rs.1,28,738 crores and made an operating profit of Rs.1,597 crores, which was a growth of 1.53 per cent over the previous financial year.

The Bank has proposed a dividend of 35 per cent for the year 2005-06, said a press release here. The total dividend declared by the bank for the previous year was also 35 per cent.

The press release said that the net NPA ratio fell to 1.56 per cent from 2.64 per cent in March 2005.

The Bank expects to reach a business turnover of Rs.1,60,000 crores during the current financial year with deposits making up Rs.90,000 crores and advances Rs.70,000 crores. This will be a growth of 28 per cent over the last year, said the press release.

The Bank will focus on retail, agriculture, SME and corporate sectors for future growth and will provide technology-based products targeting segments such as the youth and affluent groups. The team of marketing officers will be increased suitably.

During the last financial year, the Bank did retail loans business worth Rs.11,553 crores, up from the previous year's level of Rs.8,528 crores. Home loans sector too saw healthy growth. Home loans during last year stood at Rs.4,588 crores, up from the previous year's level of Rs.1,507 crores, a growth of nearly 49 per cent.

Priority lending during the last year was Rs.22,232 crores, a 19.60 per cent growth compared to the previous year's level of Rs.18,589 crores.

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