United Bank of India’s FY12 net soars by 21% at Rs 632.53 crore

United Bank of India (UBI) reported a net profit of Rs 149.29 crore for the quarter ended March 2012, up by 4.2% over the corresponding period last year’s figure of Rs 143.23 crore. For the 2011-12 fiscal, the bank reported a profit of Rs 632.53 crore, up by 20.72% over the previous year’s net profit of Rs 523.97 crore. The bank also reported a lower net interest margin of 3%, down from 3.13%.

The net slippage during the year under review was at Rs 1,964 crore and loans worth Rs 3,106 crore were restructured. The total loss by the bank on account of restructuring will be Rs 121 crore.

The management has said that the rate of growth in profit slowed, as 2011-12 was a difficult year with higher slippage in NPA (Non-Performing Assets) and cost of funds. Further, management expects business growth during the current fiscal to be around 20%.

The bank’s board of directors at its meeting held on May 05, 2012, have recommended dividend of Rs. 2.40 (24%) per equity share for the financial year ended March 31, 2012 subject to approval of the shareholders.