Dented by mark-to-market provisioning, Mumbai-based Union Bank of India registered almost a flat net profit of Rs 228 crore for Q1 09, up from Rs 225 crore in Q1 of the previous year, an increase of 1.33%.

MTM depreciation provisioning against its bonds portfolio was Rs 339 crore. The net NPA of the bank came down to 0.15% from 0.78% a year ago. This can be attributed to factors like focus on asset quality, stringent credit review, monetary mechanism and robust recoveries. Similarly, the gross NPA has fallen to 2.08% from 2.78% a year ago. The bank?s cost-to-income ratio reduced to 40.31% from 44.68% in the previous year. Business mix of the bank registered growth of 21.48% (y-o-y) to Rs 1,83,058 crore from Rs 1,50,692 crore during the previous fiscal. The bank aims to reach a business mix of Rs 2,20,000 crore by the end of March 2009, a growth of 22%. Of this, Rs 1,27,500 crore will be deposits (growth of 23% y-o-y) and Rs 92,500 crore advances (growth of 22% y-o-y). Net interest margin was retained at 2.63%, despite reduction of prime lending rates (BPLR) by 50 bps during the entire quarter.

The bank?s capital adequacy at 12.22% is above the minimum required level of 9%. Net worth of the bank rose to Rs 5,844 crore from Rs 4,954 crore a year ago due to plough back of profits.

The bank?s total deposits reached a level of Rs 1,07,248 crore from Rs 86,984 crore a year ago, an increase of 23.30%. Gross advances touched a level of Rs 75,810 crore, registering an increase of 19%.Net interest income increased from Rs 734 crore to Rs 810 crore, a growth of 10.35%. Non-interest income improved to Rs 222, showing a rise of 3.26%. Cost of funds increased to 5.60% from 5.41% in the previous year, while cost of deposits also went up to 6.06% from 5.72% in the previous year. While the yield on advances increased to 10.13% from 10.03% in the previous year, yield on funds decreased to 8.23% from 8.37%.

Andhra Bank net falls 50%

Hyderabad-based Andhra Bank has posted a net profit of Rs 77.62 crore for the quarter ended June 30 compared to Rs 141.08 crore in the corresponding quarter of the previous year. Total income increased from Rs 1,101.90 crore to Rs 1,276.03 crore during the period under consideration, registering a growth of 15.78%.

Total business of the bank increased by 21.60% to Rs 83,256 crore against Rs 68,466 crore in the corresponding period last year. Total deposits during the period increased to Rs 49,175 crore and advances moved up to Rs 34,081 crore. The bank, according to a statement, has extended the Rs 916.73 crore as ?agriculture debt waiver and debt relief? to 4,82,854 farmers.

The agricultural advances of the bank, after taking into account the disbursement under the agricultural debt waiver and relief scheme, was Rs 6,105 crore. Capital adequacy ratio as of June 2008 was 12.13% as against 12.49% in June 2007. Net non-performing assets of the bank stood at Rs 35.13 crore, representing 0.10% of net advances, as against Rs 51.17 crore, working out to 0.19% of net advances in the previous year.

Oriental Bank net at Rs 220 cr

Oriental Bank of Commerce (OBC) on Friday said it posted a net profit of Rs 220.52 crore for the first quarter of this financial year. The figure stood at Rs 139.18 crore in the corresponding quarter of last fiscal.

Total Income of the bank rose to Rs 2,159.21 crore for the quarter, from Rs 1,680.34 crore in the quarter ended June 30, 2007, OBC said in a filing to the Bombay Stock Exchange.

The working results of quarter ended June 30, 2008, are not comparable with the figures of corresponding quarter a year ago on account of provisioning made during the quarter and excess of liabilities over its assets, the bank said.

Provision on non-performing advances have been made as per prudential norms of Reserve Bank of India (RBI) whereas in the corresponding quarter such provisions were made on rates higher than RBI?s provisioning norms, OBC said.

Besides, the excess of liabilities over assets taken over of erstwhile Global Trust Bank on amalgamation have been fully written off by March 31, the bank said, adding that there was no further write offs required on this account. In the corresponding quarter a year ago, Rs 61.24 crore were written off.

IndusInd?s PAT up 44% at Rs 19 crore

Private sector lender IndusInd Bank?s profit after tax (PAT) in the first quarter went up by 44% to Rs 19 crore against Rs 13 crore in the corresponding period of the previous year.

Unlike other banks, IndusInd has booked a mark-to market loss of Rs 2 crore in its bond portfolio in the first quarter of the current financial year.

Announcing the bank?s financial results for the quarter ended June 30, Romesh Sobti, managing director and CEO, IndusInd Bank, said, ?We hold Rs 7,200 crore worth exposure in government securities as-on-date. Around 95% of this chunk falls in hold-to-maturity segment. So, we have not been impacted much. We do not have any structured derivatives in our books as we sell plain vanilla currency options.?

The bank?s gross income for Q1FY09 rose by 18% to Rs 583 crore as compared to Rs 496 crore in the corresponding quarter of the previous year.

For the quarter, the yield on advances rose by 124 basis points on year-on-year basis and the cost of deposits decreased leading to a jump in net interest income by 79% to Rs 103 crore as against Rs 57 crore in Q1FY08.