Union Bank of India is likely to trim down interest rates on home and education loans next month if its net interest margins (NIM) remains strong. It aims to take a call on reducing interest rates on the retail side such as home and education loans after the NIM data for February is available. In December end bank’s NIM was 3.3%.
The bank also planning to open a subsidiary in the UK and was looking for the regulatory approval of the UK authorities. It has already received the go ahead from the Reserve Bank of India. It is also looking to open branches in Belgium and Sydney, besides offices in Dubai, Shanghai and Beijing.
The bank posted a contraction of 66% in its net profit of Rs 197.00 crore for the quarter ended December 31, 2011 as compared to Rs 579.57 crore for the quarter ended December 31, 2010. The bank’s total income has increased by 27.14% to Rs 5966.82 crore for the quarter ended December 31, 2011 as compared to Rs 4693.06 crore for the corresponding quarter of the previous fiscal.
