The bank's operating profit during the September quarter witnessed a 138% year-on-year jump to Rs 1,207.04 crore from Rs 506.10 crore in the corresponding quarter of the last fiscal, as both net interest income (NII) and non-interest income substantially grew.
UCO Bank on Thursday narrowed its net loss to Rs 891.98 crore for the second quarter ended September 30, against a net loss of Rs 1,136.44 crore for the same period a year ago, with the operating profit rising over two-fold. The Kolkata-based lender, which is under the prompt corrective action (PCA) framework of the Reserve Bank of India, had reported a net loss of Rs 601.45 crore for the first quarter of the current fiscal.
The bank’s operating profit during the September quarter witnessed a 138% year-on-year jump to Rs 1,207.04 crore from Rs 506.10 crore in the corresponding quarter of the last fiscal, as both net interest income (NII) and non-interest income substantially grew. While NII rose 31.27% y-o-y to Rs 1,266.20 crore, non-interest income posted a whopping 170.5% y-o-y growth at Rs 728.87 crore during this July-September period, according to a stock exchange filing. Total income grew close to 21% y-o-y to Rs 4,533.51 crore.
AK Goel, MD and CEO, said treasury profit and earning from written-off accounts boosted the bank’s non-interest income during the quarter. The lender, in a release, said its gross advances increased to Rs 117,329.10 crore as on September 30, 2019 from Rs 116,596.41 crore as on September 30, 2018, registering a growth of 0.63%. CASA rose to 40.55% at the end of second quarter from 36.96% at the end of last fiscal.
During the reviewed quarter, gross non-performing assets (NPAs) in absolute terms fell 13.24% y-o-y to Rs 25,665.14 crore from Rs 29,581.49 crore in the same period of FY19. Sequentially, gross NPA decreased 12.79% from Rs 29,431.60 crore in the June quarter. Gross NPA as a percentage of total loans fell 298 basis points (bps) to 21.87% from 24.85% during the previous quarter. During the period under review, the net NPA ratio decreased 66 bps sequentially to 7.32%.
Provisions and contingencies rose 27.8% y-o-y to Rs 2,099.02 crore from Rs 1,642.54 crore in the corresponding period of FY19. Provisions for NPAs also increased by over 44% y-o-y to Rs 2,034.07 crore from Rs 1,410.94 crore.