State-run UCO Bank on Thursday reported a whopping 145.6% year-on-year jump in its net profit to Rs 504.52 crore for the second quarter this fiscal, backed by close to 75% Y-o-Y fall in provisions for bad loans as the lender’s asset quality improved.
The lender had posted a net profit of 205.39 crore for the same period last fiscal. Operating profit saw a 10.82% decline as the lender took a hit on treasury income, which led to a 16.68% decline in non-interest income. Non-interest income for the period under review decreased to Rs 779.94 crore from Rs 936.07 crore for the corresponding period last fiscal.
Net interest income (NII) grew 10.75% to Rs 1,769.6 crore, against Rs 1,597.73 crore for the year-ago period. Total income saw a 6.64% y-o-y growth at4,964.84 crore. Net interest margin stood at 2.84% as on September 30, 2022, up 10 basis points on a quarter-on-quarter basis.
“This is one of the best quarters in the history of the bank. This is the highest quarterly profit made by the bank,” MD & CEO Soma Sankara Prasad said after the bank declared the September quarter results.