Tag: uco bank results

UCO Bank posts five-fold rise in Q2 profit to ₹205 crore

Banking & Finance

[ad_1]

Read More/Less


UCO Bank, which recently came out of the Prompt Corrective Action (PCA) measure of Reserve Bank of India, registered over five-fold growth in net profit at ₹205 crore for the second quarter ended September 30, 2021, as compared with ₹30 crore same period last year.

According to Atul Kumar Goel, MD & CEO, UCO Bank, the growth in net profit was mainly on the back of a rise in net interest income and lower provisions.

Net interest income grew by 15 per cent to ₹1,598 crore during the quarter under review, as against ₹1,394 crore same period last year. Other income increased by 31 per cent to ₹936 crore (₹713 crore).

Provisions during the quarter came down by nearly 22 per cent to ₹1,019 crore (₹1,301 crore).

The bank came out of PCA in September this year following the compliance of norms by maintaining minimum regulatory capital, net NPA, and leverage ratio on an ongoing basis.

The operating profit increased by 24 per cent at ₹1,334 crore (₹1,076 crore).

Gross non-performing asset (NPA) as a percentage of total advances declined to 8.98 per cent (11.62 per cent). This is despite the fact that the bank recognised its exposure of close to ₹1,440 crore in three big accounts as NPA during the quarter under review. This includes around ₹1,000 crore in Srei Infrastructure and Srei Equipment Finance; around ₹190 crore in Delhi Metro and another ₹250 crore in a road project.

Net NPA came down to 3.37 per cent (3.63 per cent).

Provision coverage ratio (PCR) increased to 90.02 per cent as on September 30, 2021 from 89.82 per cent same period last year and from 88.53 per cent as on June 30, 2021.

RBI resolution framework

UCO Bank has restructured 2,067 accounts amounting to ₹1,356 crore under Resolution Framework 1.0 and another 51,512 accounts amounting to ₹2,705 crore under Resolution Framework 2.0 of RBI.

The bank’s domestic net interest margin improved marginally to 2.9 per cent (2.88 per cent) during the quarter under review. It expects NIM to further improve to around three per cent by the end of this fiscal.

UCO Bank, which grew its advances by around six per cent during the quarter under review, expects close to 10 per cent growth in loan book this fiscal aided by a steady pick up in demand.

“We are out of the Covid impact and there is good demand in retail, agriculture and corporate sectors. We are expecting 10 per cent growth in advances this fiscal,” Goel said.

The bank has also tied up with an NBFC in housing sector for co-lending model.

The bank’s scrip closed at ₹14.38, down by 2.04 per cent on the BSE on Thursday.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

UCO Bank posts four-fold rise in Q1 profit at ₹102 crore

Banking & Finance

[ad_1]

Read More/Less


Riding on the back of a higher net interest income and other income UCO Bank saw over four-fold rise in net profit at ₹102 crore for the quarter ended June 30, 2021, as against ₹21 crore same period last year.

Net interest income increased by 15 per cent at ₹1,460 crore from ₹1,267 crore same period last year.

“There has been an improvement across all parameters including net interest income, other income, treasury income and recovery from written off accounts. This has given a boost to our operating profit and net profit,” Atul Kumar Goel, MD and CEO, UCO Bank, said at a virtual press conference here on Tuesday.

Other income rises

Other income during the period under review increased by around 25 per cent to ₹970 crore from ₹774 crore same period last year.

On a sequential basis, net profit was up by around 28 per cent as compared to ₹80 crore during the quarter ended March 31, 2021.

The bank’s advances during the quarter under review grew by around five per cent at ₹1,20,849 crore against ₹1,15,236 crore same period last year. Goel expects credit offtake to pick up during the subsequent quarters backed by a steady demand.

“We have recovered from the Covid induced slowdown witnessed in April and May. And things are expected to improve. There is a lot of demand (for credit) from corporates, NBFCs, MSME etc. We are hoping for a growth of around 10 per cent in credit this year,” he said.

Total deposits grew by around nine per cent at ₹2,12,097 crore as on June 30, 2021, as against ₹ 1,95,119 crore same period last year.

NPAs decline

Gross non-performing assets (NPA) reduced to ₹11,322 crore as on June 30, 2021 from ₹16,576 crore last year. Gross NPA as a percentage to advances also came down to 9.37 per cent as against 14.38 per cent last year.

Net NPA also reduced to 3.85 per cent (4.95 per cent).

The bank’s provision coverage ratio increased to 88.53 per cent as on June 2021, up from 86.50 per cent same period last year.

Total provisions increased by 21 per cent to ₹1,127 crore (₹932 crore). Provision for NPA increased by nearly 50 per cent at ₹845 crore (₹565 crore).

Capital adequacy ratio stood at 14.24 per cent and CET-I ratio at 11.32 per cent as June 30.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,

UCO Bank profit surges 371% to ₹80 cr in March quarter

Banking & Finance

[ad_1]

Read More/Less


Riding on the back of a higher net interest income and other income, UCO Bank registered 371 per cent growth in net profit at ₹80 crore for the quarter ended March 31, 2021, as against ₹17 crore during the corresponding quarter last year.

Net interest income grew by 13 per cent at ₹1,412 crore during the quarter under review as against ₹1,254 crore, while other income increased by 78 per cent at ₹1,370 crore (₹769 crore).

The bank registered a net profit of ₹167 crore for the year ended March 31, 2021, as against a net loss of ₹2,437 crore in 2019-20.

Total provisions during the quarter increased by 49 per cent at ₹1,783 crore (₹1,193 crore). Provisions for non- performing assets (NPA), however, witnessed a decline at ₹770 crore (₹1,089 crore).

The percentage of gross NPA to advances declined to 9.59 per cent (16.77 per cent), while net NPA came down to 3.94 per cent (5.45 per cent).

The bank had fresh slippages of around ₹2,449 crore during the March quarter, primarily coming from retail, agriculture, MSME and large corporate. During the quarter ended March 31, 2021, the bank has reported 28 borrowal accounts as frauds involving a total amount of ₹1,238 crore, the bank said in a notes to account to BSE on Thursday.

The bank’s scrip closed at ₹13.30, up by 2.54 per cent on the BSE on Thursday.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , ,