UCO Bank cuts Q2 net loss to Rs 892 crore

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Published: November 8, 2019 4:31:06 AM

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, UCO Bank Q2 net, Reserve Bank of India, NPA ratio, stock exchange filingThe 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.

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.

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