Public sector lender UCO Bank on Friday announced a 288.35% year-on-year surge in net profit at R400 crore in the September quarter on high net interest income due to a robust growth in revenue from retail banking.
The bank had posted R103 crore profit in the same period last fiscal.
Bankís total income rose 5.55% y-o-y to R4,653 crore from R4,408 crore in the second quarter of last fiscal, while revenue from retail banking grew 48.71% y-o-y to R1,554 against R1,045 crore year-on-year.
Interest income of the bank soared to R4,444 crore from R4,196 crore, registering a growth of 5.91% y-o-y. Net interest income of the bank stood at R1,013 crore against R1,569.39 crore in the same period last year, a jump of nearly 55%.
Bank showed a high growth in net interest income backed by substantial improvement in Casa that grew to 35.49% from 25.93%.
UCO Bank chairman and managing director Arun Kaul said the bank posted a nearly four-fold growth in net profit in the second quarter this year due to a rise in interest income, growth in Casa and fall in cost of deposit. Advances of the bank were at R1.39 lakh crore at the end of September 2013, and grew 15% y-o-y from R1.20 lakh crore at the end of September 2012.
Average cost of deposit stood at 6.09% for the second quarter of FY14 as against 7.44% in the corresponding quarter last fiscal, showing a decreasing trend due to shedding of high-cost deposits, the bank said.
Total recovery rose to R778.24 crore from R276 crore sequentially. Fresh slippages in the second quarter of FY14 came down to R976 crore from R1,540 crore for the corresponding period of FY13. Gross NPA, however, increased 5.32% of total advances by September 2013 from 4.88% a year ago. Net NPAs also rose to 3.13% from 2.94%.