Union Bank of India rose 1.98% to Rs 105.80 at 14:01 ISTon BSE after net profit rose 15.39% to Rs 348.94 crore on 18.26% increase in total income to Rs 8230.17 crore in Q3 December 2013 over Q3 December 2012.

The result was announced during trading hours today, 31 January 2014.

Meanwhile, the BSE Sensex was up 31.39 points, or 0.15%, to 20,529.64.

On BSE, so far 8.43 lakh shares were traded in the counter, compared with an average volume of 7.38 lakh shares in the past one quarter.

The stock hit a high of Rs 108 and a low of Rs 103.70 so far during the day. The stock hit a 52-week high of Rs 257.40 on 31 January 2013. The stock hit a 52-week low of Rs 97.10 on 29 August 2013.

The stock had underperformed the market over the past one month till 30 January 2014, sliding 18.69% compared with the Sensex’s 3.05% fall. The scrip had also underperformed the market in past one quarter, falling 9.78% as against Sensex’s 2.55% fall.

The mid-cap company has an equity capital of Rs 630.30 crore. Face value per share is Rs 10.

In terms of RBI Circular on ‘Investment Portfolio of Banks-Classification, Valuation And Provisioning’, the bank has opted to amortize the depreciation on Available For Sale (AFS) and Held For Trading (HFT) portfolios on each of the valuation dates in the current financial year in equal installment during the fiscal year ending March 2014, as per the option given in the aforesaid circular, out of the net incremental depreciation of Rs 64.45 crore on AFS/HFT investments as at 31 December 2013, the bank has recognized Rs 14.65 crore in the profit and loss account during the current quarter.

The RBI has advised banks to create a Deferred Tax Liability (DTL) on outstanding amount in special reserve created as a matter of prudence. Accordingly, during Q3 December 2013, the bank has created a DTL of Rs 720.59 crore on special reserve outstanding as at 31 March 2013, by reducing the reserves. Further, DTL of Rs 48.44 crore on the estimated special reserve for nine month period has been created in the quarter ended 31 December 2013, Union Bank of India said in a statement.

Union Bank of India’s global business grew by 19.45% to Rs 512870 crore as on 31 December 2013 compared with 31 December 2012.

CASA deposits grew by 9.77% to Rs 82112 crore as on 31 December 2013 compared with 31 December 2012. CASA share in total deposits stood at 28.08%.

Net interest income rose 3.81% to Rs 1963 crore in Q3 December 2013 over Q3 December 2012.

Domestic net interest margin (NIM) on earning assets stood at 2.54% in Q3 December 2013 compared to 3.03% in Q3 December 2012. Global NIM for Q3 December 2013 was 2.50%, as compared to 2.95% in Q3 December 2012.

Non interest income rose 6.25% to Rs 680 crore in Q3 December 2013 over Q3 December 2012.

Union Bank of India’s ratio of net non-performing assets (NPA) to net advances stood at 2.26% as on 31 December 2013, compared with 2.15% as on 30 September 2013 and 1.70% as on 31 December 2012.

The bank’s ratio of gross NPA to gross advances stood at 3.85% as on 31 December 2013, compared with 3.64% as on 30 September 2013 and 3.36% as on 31 December 2012.

Provisions and contingencies fell 28.80% to Rs 610.40 crore in 31 December 2013 over 31 December 2012. The provisioning coverage ratio as on 31 December 2013 stood at 59.97%.

The bank’s Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.12% as on 31 December 2013, compared with 9.72% as on 30 September 2013.

Government of India holds 60.13% stake in Union Bank of India (as on 31 December 2013).

Source : Lokesh Shastri