Union Bank of India has posted a 36.84 per cent increase in net profit at Rs 155.89 crore (Rs 1.56 billion) for the first quarter ended June 30, 2003, compared to Rs 113.91 crore (Rs 1.14 billion) in April-June 2002.

The total income for the quarter grew by 7.73 per cent at Rs 1,277.66 crore (Rs 12.78 billion) as against Rs 1,185.92 crore (Rs 11.86 billion), V Leeladhar, chairman and managing director, Union Bank, told reporters in Mumbai on Monday.

The sharp drop in cost of deposits to 6.23 per cent as on June 2003 from 7.01 per cent in June 2002, helped to post better earnings, he said.

Advances grew to Rs 26,099 crore (Rs 260.99 billion) for the reporting quarter compared to Rs 22,714 crore (Rs 227.14 billion) as on June 30, 2002. When compared to those of the previous quarter (Jan-March 2003), advances were down from Rs 26,649 crore (Rs 266.49 billion), as on March 31, 2003 to the present level, Leeladhar said.

The deposit base grew to Rs 44,759 crore (Rs 447.59 billion) from Rs 40,323 crore (Rs 403.23 billion) as on June 30, 2002.

On non-performing assets, he said the bank has implemented a 90-day norm to classify assets with overdue payments as bad assets, resulting in the addition of Rs 150 crore (Rs 1.50 billion) in gross NPAs.

The gross NPA stood at Rs 2,569 crore (Rs 25.69 billion) [Rs 2,386 crore (Rs 23.86 billion) as on June 2002].