UCO Bank narrows Q4 net loss to Rs 1,552.02 crore

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Published: May 15, 2019 1:03:33 AM

Uco Bank on Tuesday reported narrowing of its net loss to Rs 1,552.02 crore for the quarter ended March 31, 2019, against a net loss of Rs 2,134.36 crore for the same period a year ago, with rising operating profits and falling provisions for bad loans.

UCO Bank narrows Q4 net loss to Rs 1,552.02 croreUCO Bank narrows Q4 net loss to Rs 1,552.02 crore (File photo)

Uco Bank on Tuesday reported narrowing of its net loss to Rs 1,552.02 crore for the quarter ended March 31, 2019, against a net loss of Rs 2,134.36 crore for the same period a year ago, with rising operating profits and falling provisions for bad loans.

The Kolkata-based lender, which is under the ‘prompt corrective action’ framework of the RBI, had reported a net loss of `998.74 crore for the third quarter of the last fiscal. It is aiming to come out of the PCA framework by the fourth quarter of the current fiscal.

The bank’s operating profit during the quarter jumped over six fold to `690.56 crore from `112.42 crore in the corresponding quarter of the previous fiscal as both net interest income (NII) and non-interest income grew substantially. While NII rose 59.92% year-on-year at `1,291.95 crore, non-interest income posted a whopping 449.15% y-o-y growth at `366.72 crore during this January-March period.

During the March quarter, gross non-performing assets (NPAs) in absolute terms fell close to 4% quarter-on-quarter to `29,888.33 crore from `31,121. 79 crore in the December quarter, according to the stock exchange filing. Gross NPA as a percentage of total loans fell 239 basis points (bps) to 25% from 27.39% during the previous quarter. During the period under review, net NPA ratio also decreased 276 bps sequentially at 9.72%.

Provisions and contingencies fell to `2,242.58 crore from `2,239.01 crore in the corresponding period of FY18. AK Goel, MD & CEO, said he was hopeful that the lender would turn to profit and come out of the ‘prompt corrective action’ measure by the fourth quarter of this fiscal. “The net NPA ratio is expected to come down to below 6%, and the bank should return to profits by the last quarter of FY20,” Goel added.

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