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: Union Bank of India recorded a quarterly operating profit of Rs758-crore for Mar ‘07 as against Rs420-crore in the previous year registering growth of 80.48 per cent. Operating profit for the financial year was Rs2,001-crore as against Rs1,466-crore in the previous year - a growth of 36.49 per cent. Net Profit for the quarter-ended Mar ‘07 was Rs228-crore as against Rs145-crore in the previous year — a growth of 57.24 per cent. Net Profit was robust at Rs845-crore for the financial year ended March 31, 2007 registering a growth of 25.19 per cent. Net interest margin improved from 3.03 per cent to 3.05 per cent on the back of prudent asset management and cost containment. The demand deposits component posted a significant increase of 214 bps, to 34.50 per cent of total deposits. This had a smoothening impact on otherwise rising cost of deposits.
Capital Adequacy shored up to 12.80 per cent from 11.41 per cent in 2006. Net worth of the bank posted a smart rise to Rs4,728-crore from Rs4,080-crore in the previous year due to plough back of profits. Return on Average Assets improved from 0.84 per cent to 0.92 per cent indicating more efficient utilization of assets.
