Public sector lender, United Bank of India has booked 34% rise in net profit amounting to Rs 163 crore for the third quarter of this fiscal. The profits for the same period last fiscal amounted to Rs 121 crore.
The operating profits of the bank rose 84% to Rs 387 crore.
The net interest margin (NIM) has also risen to 3.21% in this quarter as compared to 3.04% in the second quarter of this fiscal. There has been an improvement in yield on advances to 10.39% as against 9.46% earlier.
"The growth in low cost deposits has offset the rise in deposit rates," the bank CMD Bhaskar Sen said. Considering deposit rate hike, he said, "As of now, we have no plans... but we have to review the rates time to time depending on the market condition."
Asset quality however still continues to be a concern for the bank. As on December 30, 2010 the gross and net NPAs of the bank stood at 2.93% and 1.52% respectively.