Public sector lender UCO Bank on Thursday reported a 3.48% year-on-year dip in its net profit to R303.59 crore for the quarter ended..
Public sector lender UCO Bank on Thursday reported a 3.48% year-on-year dip in its net profit to R303.59 crore for the quarter ended December 31, 2014, from R314.53 crore for the same period a year ago, on the back of higher provisions and lower net interest income.
The Kolkata-headquartered lender’s other income, however, registered a whopping 246% y-o-y jump to R659.80 crore, buoyed by rise in profit from treasury operations.
The bank’s net interest income (NII), the difference between interest earned and interest expended, posted a 9% y-o-y decrease to R1,420.66 crore during the period under review from R1,565.75 crore during the corresponding period last fiscal.
During the October-December period, provisions grew close to 12% y-o-y to R907.54 crore against R811.68 crore for the year-ago period.
During the December quarter, the bank’s gross NPA in absolute terms rose 29.6% to R9,530 crore versus R7,353.30 crore in the corresponding period of FY14.
The bank said fresh slippages during the quarter stood at R2,757 crore compared to R595 crore in the year-ago period.
The bank’s asset quality deteriorated as its gross non-performing assets (NPA) as percentage of gross advances was up 130 basis points at 6.5% during the third quarter versus 5.2% in the same period a year ago.
Net NPA ratio was up 119 basis points at 4.25% versus 3.06% y-o-y.
Lender to raise R400 cr by selling shares to LIC
New Delhi, Feb 5: UCO Bank on Thursday said it would sell 6.08 crore shares to LIC on preferential basis, which may fetch about R400 crore to the lender.
The board of the bank, at a meeting, approved a proposal for issue of 6.08 crore shares of R10 each to Life Insurance Corporation of India (LIC) on preferential basis at a price to be determined in accordance with Sebi regulation, UCO Bank said in a statement.
LIC currently holds 8.69% stake in UCO Bank.