State-run UCO Bank on Saturday announced that its net profit for the quarter ended June 30 more than halved to Rs 256.70 crore from Rs 521.40 for the year-ago period...
State-run UCO Bank on Saturday announced that its net profit for the quarter ended June 30 more than halved to Rs 256.70 crore from Rs 521.40 for the year-ago period due to a fall in its interest income and a steep rise in provisions as the lender’s asset quality deteriorated sharply.
The bank’s amount of gross non-performing assets (NPA) in absolute term rose to Rs 10,894.41 crore during the June quarter from Rs 6,346.32 crore in the same period last fiscal.
NPA as a percentage of total loans also increased sharply to 7.30% during the period under review as against 4.31% in first quarter of FY15.
During the April-June period, the lender’s total income saw over 4% year-on-year dip at Rs 5,169.09 crore as its interest income fell close to 7% y-o-y to Rs 4,728.99 crore, as per a stock exchange filing.
Net interest income (NII) during the first quarter posted 7.58% y-o-y fall to Rs 1,370.64 crore from Rs 1,483.13 crore in the year-ago period. Operating profit also reduced to Rs 1,161.45 crore, registering a decline by more than 3% y-o-y.
Provisions and contingencies during the June quarter this fiscal increased sharply by 47.65% y-o-y at Rs 763.56 crore as against Rs 517.14 crore in the same period last fiscal. The bank’s net NPA ratio rose to 4.53% from 2.33% during the corresponding period of FY15.