UCO Bank net profit rises 21% to Rs 124 crore

The bank’s net profit for the year-ago period stood at Rs 101.81.

“We had to make a provision of Rs 653 crore as the mark-to-market in this quarter. So, that impacted our other income,” MD & CEO Soma Sankara Prasad told reporters after announcing the results.  
“We had to make a provision of Rs 653 crore as the mark-to-market in this quarter. So, that impacted our other income,” MD & CEO Soma Sankara Prasad told reporters after announcing the results.  

UCO Bank on Friday reported a 21.41% year-on-year increase in its net profit to Rs 123.61 crore for the first quarter this fiscal, buoyed by nearly 13% Y-o-Y rise in net interest income (NII) and around 68% fall in provisions for bad loans. The bank’s net profit for the year-ago period stood at Rs 101.81.

The operating profit, however, fell 62.51% to Rs 439.94 crore, compared with Rs 1,173.41 crore, because of the mark-to-market (MTM) losses on its treasury book. “We had to make a provision of Rs 653 crore as the mark-to-market in this quarter. So, that impacted our other income,” MD & CEO Soma Sankara Prasad told reporters after announcing the results.

Also Read| RBI to widen Internal Ombudsman mechanism by including CICs 

Net interest income rose 12.96% to Rs 1,649.54 crore, from Rs 1,460.23 crore in the year-ago period. “The net interest margin (NIM) is very healthy at 3.11%, registering a growth of 53 basis points on the year-on-year basis,” Prasad said.

Total advances stood at Rs 131,349.73 crore as on June 30, 2022, against Rs 120,849.35 crore as on June 30, 2021, registering a growth of 8.69%.

Also Read| Banks cannot perennially rely on RBI money to support credit offtake: Shaktikanta Das

During the period under review, the lender witnessed a significant improvement in its asset quality as non-performing assets (NPAs) in absolute terms fell 13.97% YoY to Rs 9,739.65 crore. On a sequential basis, gross NPAs declined by 4.86% from Rs 1,0237.43 crore in Q4FY22, according to a stock exchange filing. The gross NPA ratio fell 195 basis points at 7.42% at the end of Q1FY23, compared with 9.37% at the end of Q1FY22. Net NPA ratio fell 136 bps YoY to 2.49%.

The bank’s provision for NPAs declined 68.33% YoY to Rs 267.56 crore as against Rs 844.76 crore during Q1FY22. The provision coverage ratio increased to 91.96% as on June 30, 2022 from 91.44% as on June 30, 2021.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos