Union Bank reports 25 per cent higher net in FY07

Mumbai: Union Bank has reported a 25 per cent increase in net profit at Rs845.39 crore for the year ended March 31, 2007 against Rs675.18 crore in FY06.

According to a release issued by the bank, total income increased to Rs8,068.72 crore for the year ended March 31, 2007 from Rs6,358.20 crore for the year ended March 31, 2006.

The bank posted a 58.06 per cent increase in net profit at Rs228.58 crore for the fourth quarter ended March 2007, as compared to Rs144.61 crore for the same period previous year. The total income grew 33.87 per cent to Rs2,336.72 crore in the quarter from Rs1,745.47 crore for the corresponding quarter a year ago, the bank informed the BSE.

The board of directors of the bank proposed a final dividend of 20 per cent for the financial year 2006-07 in addition to the 15 per cent interim dividend paid during the year.

The bank has also announced a reduction in interest rates of home loans of up to Rs20 lakh by 50 basis points with effect from today.

The bank said the reduction in interest rates follows the RBI's recent policy announcement reducing the risk weightage for housing loans of Rs20 lakh and less to 50 per cent.