Union Bank of India (UNIONBANK) Q4 98/99 earnings summary

Executive summary

• FY1998-99 net profit after tax was ₹160.22 crore, versus ₹250.09 crore in FY1997-98; net worth rose to ₹1,683 crore from ₹1,577 crore.

• Business mix reached ₹40,000 crore by March 1999; the three-year plan was to double it.

Financial highlights

• Total income rose to ₹31,31,63,03 thousand from ₹27,11,69,44 thousand; interest earned was ₹28,69,03,96 thousand and other income ₹2,62,59,07 thousand.

• Interest expense was ₹20,37,49,73 thousand, operating expenses ₹7,84,15,47 thousand, and provisions and contingencies ₹1,49,75,68 thousand.

• Net profit after tax was ₹160.22 crore; FY1997-98 net profit was ₹250.09 crore.

• Total deposits were ₹28,382 crore at March-end, up ₹5,336 crore or 23.1% during FY1998-99; gross advances reached ₹11,954 crore.

Outlook and guidance

• Business mix of ₹40,000 crore at March 1999 was targeted to double over the next three years.

• Consumer, housing and trade finance marketing, alongside disbursement of previously sanctioned credit lines, was expected to support advances in FY1999-2000.

• Integrated treasury operations with upgraded communications and dealing systems were scheduled to start by July 1999; nationwide ATM expansion to 50 was planned by year-end.

• Agricultural growth and improving global demand were expected to support domestic demand and industrial recovery in 1999-2000.