Uco Bank net slips 26% on higher provisions

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Kolkata | May 13, 2015 12:03 AM

Uco Bank on Tuesday reported a 26.49% y-o-y dip in net profit to R209.28 crore in the March.

Uco Bank on Tuesday reported a 26.49% y-o-y dip in net profit to R209.28 crore in the March due to a fall in total income and a rise in bad loan provisions.

Asset quality deteriorated as gross NPAs in absolute term saw a whopping 55% y-o-y rise to R10,265.05 crore. For the full year, the bank posted a 24.6% y-o-y decline in net profit to R1,138 crore. Profitability was also impacted due to a gradual decrease in Iran deposits with oil prices falling.

CMD Arun Kaul said the bank saw a low growth in advances and heavy slippages in Q4. “In the uncertain economic conditions, many restructured accounts slipped into NPA. Many steel companies are under stress,” Kaul added.

Total income fell 0.9% y-o-y to R526.33 crore, while net interest income fell 1.82% y-o-y to R1,275.67 crore. Total provisions during the fourth quarter of FY15 grew 7% y-o-y to R968.38 crore from R904.64 crore in the same period last fiscal. Provision for NPAs saw a sharp 27.65% y-o-y rise to R697 crore.

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