State-run UCO Bank on Friday reported a net loss of Rs 1,715.16 crore for the quarter ended March 31, 2016, against a net profit of Rs 209.28 crore for the same period a year ago, on account of close to 54% year-on-year decline in its operating profit and a whopping 142% Y-o-Y rise in provisions to cover a huge surge in bad loans.
The lender’s asset quality during the March quarter significantly deteriorated with non-performing assets (NPAs) in absolute term rose by nearly 104% Y-o-Y to Rs 20,907.73 crore, compared with Rs 10,265.05 crore in the same period last year. Its gross NPA as a percentage of total loans rose to 15.43% in the fourth quarter from 6.76% a year ago.
The bank’s operating profit fell to Rs 567.66 crore during the period under review from Rs 1,227.27 crore as net interest income (NII) fell by close to 27% to Rs 933.11 crore while other incomes declined by 41.5% to Rs 387.80 crore, according to a BSE filing.
Because of a whopping rise in bad loans, the public sector lender’s provisions and contingencies rose 142% Y-o-Y to Rs 2,344.88 crore for the March quarter from Rs 968.38 crore for the corresponding period previous fiscal.
At the end of March quarter, UCO Bank’s net NPA ratio rose to 9.09% from 4.30% during the year-ago period. Its non-performing loan provisioning coverage ratio stood at 53.87% as on March 31, 2016.
The scrip on Friday closed down 5.94% at Rs. 34.05 on the BSE.