Union Bank of India has announced its results for the fourth quarter of the fiscal last ended. The public sector lender has booked a net profit of Rs. 594 crore, which is a 27% rise over the profit generated for the same quarter in the year prior to that. The bank has achieved this profit owing to an increase in its net interest income.
The bank has declared dividend at the rate of 55% against 50% last year. The bank has generated a net profit of Rs. 2075 crore for the full year which is a 20% increase over the last year's figures and operating profit 19% to Rs 3,659 crore.
The net interest income of the bank rose by 50% to Rs 1,396 crore from Rs 926 core as interest expenses fell 8% to Rs 2,165 crore in the fourth quarter.
Union Bank of India chairman and managing director MV Nair said: "We will aim at NIM of over 3%, credit growth of 25% and a deposit growth of 22%." He also indicated that the bank is targeting to increase the share of low-cost deposits to 35% in 2012 from 31.7% now.
Deposits have grown Rs 31,337 crore or 22.6% to Rs 170,040 crore.
Capital adequacy ratio of the bank figured at 12.51%, of which the tier-I capital is marginally below 8%. "We are a little uncomfortable about tier-I fall below 8% and we have asked for capital from the government," said Mr Nair.