Union Bank Of India Finnancial results for the quarter ended Jnue 30, 2015

BANKING / FINANCE

by Shrutee K / DNS

The Board of Directors of Union Bank of India approved 

the accounts of the Bank for the quarter ended June 30, 2015.

Global Business up 8.6% (y-o-y) to Rs. 582817 crore as on June 30, 2015 Savings deposit grew at 10.6% (y-o-y) while share of high cost deposits declined to 5.4% (Jun 2015) from 13.5% (Jun 2014).

Advances to productive sectors of economy, i.e. Retail, Agriculture, and MSMEs, which we together call as ‘RAM’ sectors, grew by 16.6% (y-o-y), now contributing nearly half of domestic loan book.  Non-interest Income for the quarter (Q1/FY16) up 13.3% (y-o-y) to Rs. 783 crore driven by 24.4% (y-o-y) growth in core fee income.

Operating expenses sequentially reduced by 12% from Q4/FY15. Net Profit for Q1/FY16 stood at Rs. 519 crore, up by 17.2% over Q4/ FY15. Return on average assets for Q1/FY16 increased to 0.55%, up by 8 bps over 0.47% in Q4/FY15. Return on Equity for Q1/FY16 also increased to 11.02% from 9.70% in Q4/FY15. Cost to income Ratio declined by 223 bps to 48.92% in Q1/FY16 from 51.15% in Capital Adequacy Ratio (Basel III) stood at 10.14% (excluding quarterly profit). Tier I CRAR is 7.46%, within which CET1 is 7.20%.

Liquidity Coverage Ratio of the Bank for the quarter ended June 30, 2015 was 116.10% against regulatory minimum of 60% reflecting comfortable liquidity. Global Business grew by 8.6% from Rs. 536824 crore as on June 30, 2014 to Rs. 582817 crore as on June 30, 2015. Global Deposits increased from Rs. 297420 crore as on June 30, 2014 to Rs. 327264 crore as on June 30, 2015, registering a growth of 10.0%. Domestic. Deposits increased by 9.8% from Rs. 293137 crore as on June 30, 2014 to Rs. 321963 crore as on June 30, 2015. CASA deposits grew by 6.9% to Rs. 92612 crore as on June 30, 2015 from Rs. 86637 crore in the previous year. CASA share in total deposits stands at 28.3%. Domestic CASA ratio stood at 28.7%. Savings bank deposits increased by 10.6%.