Union Bank of India (UNIONBANK) Q4 00/01 earnings summary

Executive summary

• FY2000-01 total business reached Rs.53,162 crore; deposits were Rs.34,888 crore and advances Rs.18,360 crore.

• Net profit rose to Rs.155 crore from Rs.101 crore, after Rs.106.13 crore of VRS expense was absorbed in the year.

Financial highlights

• Interest income increased 12.6% YoY to Rs.3,733 crore; other income rose to Rs.312 crore from Rs.299 crore.

• Deposits rose 12.16% YoY to Rs.34,888 crore; advances grew 16.76% to Rs.18,360 crore.

• Total income was Rs.4,045 crore and total expenditure Rs.3,889 crore; net profit was Rs.155 crore versus Rs.101 crore in FY1999-00.

• Low-cost deposits increased to 33.5% of deposits from 32.5%; NRI deposits rose 15.8% to Rs.3,278 crore.

Outlook and guidance

• Core banking on a centralized database was planned for 20 pilot branches within 18 months, supported by KPMG as strategic technology consultant.

• Retail sale of government securities through selected branches was planned; the trading book was proposed to increase from Rs.500 crore to Rs.1,000 crore.