Public sector lender Uco Bank has clocked more than 67% year-on-year growth...
Public sector lender Uco Bank has clocked more than 67% year-on-year growth in retail lending during the festive season, buoyed by a whopping growth in the home loan segment.
During this year’s festive season, the lender has so far disbursed over R400-crore retail loans, of which home loan constituted
“From mid-September till now, our bank has achieved a phenomenal growth in the retail loan portfolio on upbeat consumer sentiments during the festive season. Also, our interest rates are the most competitive in the industry,” a source in Uco Bank told FE.
The bank’s base rate stands at 10.20% and it offers home loans at the base rate. The official, however, said during the period, the bank had not witnessed much growth in corporate lending as it was cautious on disbursing loans to this segment.
Earlier, in an interview with FE, bank’s chairman & managing director Arun Kaul had said the lender would like to grow its business with low-risk assets and be more selective in corporate lending, focusing only on highly rated corporates.
During the first quarter this fiscal, Uco Bank’s total income rose 15.56% y-o-y to R5,395.17 crore from R4,668.81 crore for the corresponding period of 2013-14, backed by a 20.59% y-o-y growth in total interest income. The bank’s net interest income increased 8.73% to touch R1,483.13 crore during the June quarter.
The public sector lender had reported a 2% y-o-y rise in its net profit during the quarter ended June 30, 2014. Its asset quality had improved during the June quarter with gross NPA ratio declining 127 bps y-o-y to 4.31%. Net NPA ratio fell 82 bps y-o-y to 2.33% during the period.
The bank is scheduled to announce its September quarter results on November 7.