by NR INDRAN / INT
The Board of Directorsof the Union Bank of India today approved the 
Performance for thequarter-ended December 31, 2011
Net Interest Incomefor Q3/FY12 up 10.28% to1781 crore from 1615 crore in Q3/FY11
Net Interest Margin(on earning assets) for Q3/FY12 was 3.31%, as compared to 3.44% in Q3/FY11
Non Interest Incomefor Q3/FY12 up by 19.84% to 592 crore, compared to 494 crore in Q3/FY11
Net Profit forQ3/FY12 stood at Rs.197 crore as compared to 579 crore in Q3/FY11.Increase in provisions towards NPAs, restructured advances and depreciation oninvestments have weighed on net profits
Gross NPA ratio stoodat 3.33% in Q3/FY12 as against 2.68% in Dec. 10
Provision Coverageratio stood at 63.14% as against 70.20% in Dec.10
Bank added 9.01 lakhcustomer accounts during the quarter. Bank’s customer base increased to 31.97million as of 31st December, 2011
Highlights of performanceon Sequential basis for December, 2011 Over September, 2011
Net Interest Incomefor Q3/FY12 up 7.22% to 1781 crore from 1661 crore in Q2/FY12
Net Interest Margin(on earning assets) for Q3/FY12 was 3.31%, as compared to 3.21% in Q2/FY12
Non Interest Incomefor Q3/FY12 up by 18.16% to 592 crore, compared to 501 crore in Q2/FY12
Gross NPA ratio stoodat 3.33% in Q3/FY12 as compared to 3.49% in Q2/FY12. NPA coverage was at 63.14%as of Q3/12 as compared to 60.52% in Q2/FY12
Performance for theNine Months ended December 31, 2011
Net Interest Incomefor 9M/FY12 up 11.85% to `. 5032 crore from `. 4499 crore in 9M/FY11
Net Interest Margin(on earning assets) for 9M/FY12 was 3.19%, as compared to 3.29% in 9M/FY1
Non Interest Incomefor 9M/FY12 was `. 1577 crore, compared to `. 1438 crore in 9M/FY11, anincrease of 9.67%
Net Profit for9M/FY12 stood at `. 1014 crore as compared to `. 1484 crore in 9M/FY11.Reduction is attributed to increase in provisions towards NPAs, restructuredadvances and depreciation on investments
Balance Sheet
Global Business grewby 12.82%, from 320442 crore to 361518 crore as on December 31, 2011
Domestic Depositsincreased from 186224 cr. in Dec’10 to 204493 cr., a growth of 9.81%. GlobalDeposits increased from 186655 crore (December 2010) to 205317crore (December 2011) a growth rate of 10.00%
CASA deposits grew by7.57% to 66810 crore from 62106 crore in the previous year. CASA share in totaldeposits was at 32.54%
Domestic Advances increased from128564 cr. to 147255 cr., a growth of 14.54%. GlobalAdvances increased from 133787 crore (December 2010) to 156202 crore (December2011), a growth rate of 16.75%
Asset Quality
Bank’s Gross NPAsstood at 3.33% as compared to 2.68% in Dec. 10 and 3.49% in Sept. 11. Slippagesduring the quarter are 566 crore
Net NPA ratio is at1.88% as on December 31, 2011 as against 1.21% in Dec.10 and 2.04% in Sept. 11
Capital Adequacy
Capital Adequacy ratio of the Bank, under Basel II, is 11.72%as on December 31, 2011 as compared to 11.88% as on December 31, 2010
The Tier I CRAR is at 7.98% as on December 2011 as against7.44% in December 2010
Delivery Channels
Bank has 3177 branches including 1 overseas branch. 184branches were opened during the year including – Specialized FinancialInclusion (FI) branches
Bank has presence in 5 overseas territories including 1branch at Hong Kong and representative offices at Abu Dhabi, Beijing, London,Shanghai and Sydney. Bank has approval of Reserve Bank of India for opening asubsidiary in London, branches at Belgium & Sydney and representativeoffices in Toronto (Canada) & Johannesburg (South Africa). The bank is inthe process of obtaining approval from respective regulators
During the year, bank added 519 ATMs, taking the total numberof ATMs to 3025. Bank’s ATMs to branches ratio is 0.95, which is one of thebest among PSU Banks
Transactions through alternative channels have increased to55.72% of the total transactions of the Bank as of December 2011 compared to50.49% as of March 2011
You can contact author @ nr_indran@rediffmail.com