UNITED BANK Q2 NET UP 31% AS LOAN YIELD IMPROVES

Riding on the lower cost of deposits and a rise in yield on advances, United Bank of India posted about 31 per cent growth in net profit at Rs 110 crore for the quarter ended September 30, 2010, against Rs 84 crore during the corresponding quarter last year.

Cost of deposits came down to 5.57 per cent during the quarter under review from 6 per cent during the corresponding period last year, while yields increased to 10 per cent (9.46 per cent), thereby contributing to a rise in net interest margin.

The bank's net interest income grew by 48 per cent at Rs 526 crore (Rs 356 crore), while the net interest margin improved to 3.04 per cent (2.10 per cent).

The bank witnessed only about 7 per cent growth in deposits during the quarter at Rs 69,046 crore.

The bank, however, witnessed 25 per cent growth in current account and savings account (CASA) deposits during the quarter. The share of CASA to total deposits stood at 39.7 per cent (34 per cent). Advances grew by about 14 per cent at Rs 46,850 crore.

Other income grew by 23 per cent at Rs 152 crore (Rs 123 crore). The net non-performing assets (NPAs) stood at 1.58 per cent (1.3 per cent) during the quarter under review.

SOURCE: http://www.thehindubusinessline.com/2010/10/26/stories/2010102652440600.htm