MUMBAI, June 21: The Union Bank of India (UBI) has recorded a steep hike in profit and business during 1996-97 due to massive recovery of non-performing assets (NPA). While the net profit registered a 170 per cent rise from Rs 80 crore during 1995-96 to Rs 216 crore in 1996-97, the bank achieved a capital adequacy ratio of 10.53 per cent as of March 1997 up from 9.5 per cent as of March 1996.

``The bank has no plan to issue fresh capital as the bank is flush with funds,'' said A T Pannir Selvam, chairman and managing director of the bank.

The total deposits increased from Rs 7,892 crore to Rs 20,005 crore and advances increased from Rs 9,111 crore to Rs 9,516 crore. The share of current deposits and savings in the aggregate deposits of the bank improved from 35 per cent to 36.5 per cent. The share of priority sector advances was above th benchmark level at 43% of the banks credit portfolio. Exports advances was Rs 1061 crore and forex turnover increased by 22 per cent from Rs 7,320 crore to Rs 8,898 crore. During the year, the bank made a total recovery of Rs 328 crore of NPAs of which a sum of Rs 232 crore represented cash recoveries. The net NPA ratio to net advances was 6.9 per cent. The bank made a total provision of around Rs 40 crore only. The dividend paid to the government is Rs 43.14 crore.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.