United Bank has shared its financial results for 2012-13 and vision for next year. Below are some key highlights.
The business grew to Rs170359 crores registering a Y-o-Y growth of 11.35 per cent which compares favourably with the peer banks.
Total deposits increased from Rs89116 crores in the previous year to Rs100651crores with a growth rate of 12.9 per cent.
Total advances increased to Rs69708 crores from Rs63873 crores during the year registering a growth of 9.1 per cent.
The year-end CASA deposits at Rs39905 crores continue to be at a level of 40 per cent of total deposits showing a growth of 9.8 per cent over the previous year.
Priority sector advances increased by 15 per cent to reach at Rs25608 crores. The bank has achieved the mandated target of 40 per cent of ANBC.
Advances to agriculture increased by 17.5 per cent to Rs9571 crores covering 8.67 lakh farmers.
The bank’s credit to MSE sector has increased from Rs9157 crore to Rs11072 crore recording a growth of 20.91 per cent. In recognition of bank’s service to MSE sector bank was awarded National award as the Best Bank for lending to MSE Sector by the Ministry of MSME, Govt of India for the year 2011-12.
CD Ratio is a healthy 69.26 per cent.
Interest Income increased to Rs9251 cr with Y-o-Y growth of 16.21 per cent.
Non Interest Income rose to Rs1067 crores with a Y-o-Y growth of 45.53 per cent which includes income from treasury operations that has gone up by 114.74 per cent to reach Rs467 crores.
Yield on investments improved to 7.91 per cent from 7.82 per cent.
Yield on advances increased to 11.31 per cent.
Interest Expenditure increased by 23.39 per cent to reach Rs6764 crores.
Net Profit at Rs392 crores came down from Rs632 crores last year, down by 38 per cent on account of higher provisioning of Rs1658 crores made during the year, which includes mainly:
Provision for NPA by Rs1010 crores.
Provision for Restructured Advances Rs180 crores.
Additional provision made for pension, gratuity and wage revision amounting to Rs490 crores.
However, Net Interest Margin (NIM) still stands at 2.67 per cent.
All the allotted 1847 villages with population of above 2000 under Financial Inclusion have been provided with banking facilities.
Vision & mission (2013-14)
For the year 2013-14, the bank has undertaken an accelerated growth plan with a target to cross a total business of Rs2 lakh crore.
Bank also envisages a branch expansion plan to increase its branch network to 2000 with an ambition to spread its wing abroad. Incidentally it has two representative offices functioning at Myanmar and Dhaka.
To match its branch expansion initiative bank has a plan to expand its ATM network to 2000 to give 24 x 7 service to its clients. Bank also has a robust e-banking and mobile banking platform.
Since customers are at the heart of any organization, the Bank will make sustained effort to increase its customer base to 30 million in the current financial year.
Under Financial Inclusion Plan, bank and the sponsored RRBs have jointly covered 6558 villages through brick & mortar branches (142) and BC outlets (6416).
