NII for the quarter March 09 increased by 11% YOY and decreased by 18% QOQ. NII for QOQ decreased on account of increase in interest expenditure, due to high cost of deposits. NII for for year FY09 increase by 33.6%. Going forward management had said that cost of funding will will come down post June.

Profit before provisioning increased by 2.3 %YOY and increased by 7% QOQ. Increase in profit for QOQ was on account of increase in other income and decrease in operating expenses of the bank.

Bank Of Baroda reported PAT of 465.07 crores resulting in decrease of 31% QOQ and 10.8% YOY. PAT for the year FY09 increased by 24.5%.

Net profit for the Q4FY09 reduced mainly due to higher provision of Rs446 crores as against 370 crores , substantial employee benefits write write backs of Rs 142 crores in Q4FY08, where as additional provisioning of Rs 87 crores required in Q4FY09.

Gross & Net NPA of the bank stood at 1.96% & 0.34% respectively for Q4FY09 as compared to 1.68% & 0.14% respectively for Q3FY09.

Bank has restructured a total number of 1 lakh accounts during 2008-09 amounting to total O/S of Rs. 2959 crore. Among the restructured accounts, those with O/S of Rs 1 crore amounted to Rs. 1650 crores.

NIM for the bank stood at 3.24% for year FY09 for as compared to 2.93% for FY08. NIM for Q4FY09 was at 2.8% as compared to 3.68% for Q3FY09.

Yield on funds increased to 8.78% from 8.35% for FY09, whereas cost of funds increased from 5.76% to 5.96% for FY09. Spread improved from 2.59% to 2.82%.

Going forward bank aims to reach a business mix of Rs. 293000 crore by the end of March 2010, a growth of 23%. Of this, Rs 170250 crore will be deposits (growth of 23% YOY) and Rs 122750 crore will be advances (growth of 25% YOY).

At Current market price of Rs. 160 Union Bank Of India is trading at 4.97 times for year FY09 and 1.03 times book value.