UBI Q4 net up 4 percent

Kolkata, May 5: Kolkata-based United Bank of India (UBI) Saturday said it has registered a 4.2 percent growth in its net profit to Rs.1.49 billion for the quarter ended March 31, 2012, from Rs.1.43 billion during the corresponding period last year.

The bank reported a net profit of Rs.6.32 billion in the last fiscal, up by 20.7 percent over the previous fiscal.

“The rate of growth in profit was slow as 2011-12 was a difficult year with higher slippage in NPA (non-performing assets) and cost of funds,” UBI chairman and managing director Bhaskar Sen told reporters here.

The gross NPA ratio of the bank shot up from 2.51 percent to 3.41 percent at Rs.21.76 billion quarter-on-quarter, while net NPA ratio increased from 1.42 percent to 1.72 percent at Rs.10.75 billion during the same period.

The bank expects that its business growth during the current fiscal would be around 20 percent.

UBI, which has around 1,680 branches currently, plans to open 100 new branches in this financial year.