Aug 17 - 23, 1996

Union Bank, one of the larger private sector banks, continued with good growth levels as pre-tax profits for the six month period ended June 30, 1996 were at Rs 133 million, up over 2% from the year before.

Income from interest and returns on deposits for the half year climbed 29% from Rs 421 million to Rs 543 million, while non-interest income rose 28% from Rs 141 million to Rs 180 million. Other receipts posed some mystery here as well as this figure rose 655% over the last period.

Expenditure on interest also rose 36% from Rs 254 million to Rs 345 million while the expenditure on non-interest items rose by 37% from Rs 179 million to Rs 245 million end June 1996. This last increase was driven primarily by a jump in the salary bill of as much as 59%, although expenses on depreciation and repairs also rise 28%.