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Interest income fell 10 percent to 858 million rupees while interest expenses fell at a faster 28 percent to 530 million rupees allowing net interest income to increase by 54 percent to 328 million rupees over the preceding year.
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Its accounts showed that non-interest income rose 15 percent to 114 million rupees in the six months ended June 30, 2010 while provision for bad loans fell 45 percent to 11 million rupees.
The bank did not give a quarterly breakdown.
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Union Bank's interest margin rose to 4.
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36 percent in June 2010 from 3.
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53 percent the year before while return on equity after tax rose to 5.
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09 percent from 4.09 percent.
Total performing loans and advances rose by 18 percent to 8.
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2 billion rupees as at June 30, 2010 from the beginning of the year.
Total deposits rose five percent to 12.
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6 billion rupees.
A bank statement quoted Ajita de Zoysa, chairman of Union Bank, as saying the results were achieved despite a "re-pricing of assets and liabilities against a back