UCO Q2 net down 55% on higher NPAs, lower interest income
UCO Bank's net profit in July-September quarter in 2011 stood at Rs 230.75 crore.
"The profit was down due to fresh slippage of Rs 1,500 core as non-performing asset during the quarter and decline in interest income from shrinking margin due to stress in the economy," UCO Bank Chairman and Managing Director Arun Kaul said here.
Sources in the bank said that during the Q2 period the exposure in Sterling Biotech as a group which was of Rs 820 crore turned NPA.
The sources said total exposure of banks consortium in the group would be close to Rs 4000 crore, but this could not be confirmed from the Sterling group.
The bank, howeber, said there was assurance from the group that dues would be met within the current quarter.
The total income of the bank rose to Rs 4,408.55 crore in the second quarter of 2012-13 from Rs 3,730.79 crore in the same period a year earlier.
Income from retail banking increased to Rs 1,045.11 crore from Rs 668.79 crore. The non-performing assets (NPA) of the bank rose to 2.94 per cent during the quarter from 2.11 per cent in the year-ago period.
Kaul was expecting to register a growth of 17-18 per cent in business for the fiscal.
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