For FY14, Union Bank of India reported fall in its net profit to Rs1,696 crore due to higher non performing assets and provisions

Union Bank of India (UBI) reported lower full year net profit due to increasing non performing assets (NPAs) and provisions.

For the 12 month to end-March, the public sector lender said its net profit fell 21.4% to Rs1,696 crore from Rs2,158 crore, even as its total revenues, including interest income, grew 16.24% to Rs32,171 crore from Rs27,677 crore, a year ago period.

During FY14, UBI said its NII increased 4.5% to Rs7,879 crore from Rs7,543 crore while its non-interest income grew 10.6% to Rs2,822 crore from Rs2,552 crore in FY13. Its domestic net interest margin (NIM) stood at 2.62% compared with 3.04% a year ago period.

UBI has made 25% higher full year provision of Rs3,149 crore from Rs2,518 crore, while its provision coverage ratio stood at 60% as on 31 March 2014. It also made provision of Rs170 crore for pending settlement of the proposed wage revision effective from November 2012.

As on 31 March 2014, UBI's gross non performing assets ratio (GNPA) stood at 4.08% (Rs9,563 crore) from 2.98% (Rs6,313 crore) a year ago period. Its net NPA stood at 2.33% (Rs5,340 crore) from 1.61% (Rs3,353 crore).

As on 31 March 2014, Domestic advances of UBI increased 9% to Rs2.16 lakh crore while global advances grew 10.06% to Rs2.34 lakh crore. UBI's domestic deposits during the year increased 12.2% to Rs2.92 lakh crore and global deposits grew 12.9% to Rs2.97 lakh crore.

UBI's current account saving account (CASA) deposit grew 7.6% to Rs87,801 crore as on 31 March 2014. Its CASA share in total deposit stands at 29.5%. UBI's capital adequacy ratio (CAR) stood at 10.80%.

For the quarter to end-March, UBI said its net profit grew 66% to Rs579 crore from Rs348 crore while its total revenues, including interest income, grew 12.58% to Rs8,445 crore from Rs7,501 crore, same period last year.

During FY14, the bank also raised Rs500 crore through Basel III complaint tier-2 bonds.

During the December quarter, Government of India has subscribed to 18 crore shares  of UBI having face value of Rs10 each at a price of Rs38.88 per share (including a premium of Rs28.88) aggregating to Rs700 crore through preferential allotment.

A on 31 March 2014, the Government (Promoters) holding in UBI increased to 60.13% from 57.89%, public shareholding grew to 14.78% from  13.47%. While FII Shareholding fell to 8.47% from 10.61% and DII shareholding fell to 16.62% from 18.03% as on 31 March 2013.

UBI declared a final dividend of Rs2.70 per share.

Union Bank of India shares closed Friday 7.7% higher at Rs145 on the BSE, while the 30-share Sensex ended the day about 3% up at 22,994.

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