Uco Bank reports net profit of Rs 21 crore in Q1

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August 1, 2020 12:15 AM

In the April-June quarter this fiscal the bank’s operating profit saw a growth of 1.82% year-on-year to Rs 1,223.37 crore from Rs 1,201.44 crore for the same period last fiscal, according to its stock exchange filing.

Non-interest income, however, was up by 22.83% y-o-y to Rs 773.93 crore, compared to Rs 630.08 crore in the same period of FY20.Non-interest income, however, was up by 22.83% y-o-y to Rs 773.93 crore, compared to Rs 630.08 crore in the same period of FY20.

Public sector lender Uco Bank on Friday reported Rs 21.46 crore net profit for the first quarter this fiscal against a net loss of Rs 601.45 crore for the same period last fiscal as provisions for non-performing assets (NPAs) declined over 48% year-on-year on the back of a strong improvement in its asset quality.

The bank had posted a net profit of Rs 16.78 crore for the fourth quarter last fiscal. In the April-June quarter this fiscal the bank’s operating profit saw a growth of 1.82% year-on-year to Rs 1,223.37 crore from Rs 1,201.44 crore for the same period last fiscal, according to its stock exchange filing. Net interest income (NII), the difference between interest earned and interest expended, fell 5.11% y-o-y to Rs 1,266.78 crore, compared to Rs 1,334.97 crore in the corresponding quarter of FY20. Non-interest income, however, was up by 22.83% y-o-y to Rs 773.93 crore, compared to Rs 630.08 crore in the same period of FY20.

Provision and contingencies of the lender fell 34.53% year-on-year to Rs 1,180.37 crore, compared with Rs 1,802.89 crore in the same quarter last fiscal. Provision for NPA stood at Rs 564.78 crore as against Rs 1,089.26 crore for the June quarter of FY20.

The bank’s asset quality improved significantly as its gross non-performing assets (NPAs) in absolute terms fell 14.03% quarter-on-quarter to Rs 16,576.43 crore in the first quarter this fiscal from Rs 19,281.95 crore in the fourth quarter of the last financial year. On a year-on-year basis, gross NPAs decreased by a whopping 43.68% from Rs 29,431.60 crore for the June quarter last fiscal, according to the stock exchange filing of the bank.

During the period under review, gross NPAs as a percentage of total loans fell 808 basis points (bps) to 14.38% from 16.77% during the previous quarter. Net NPA ratio also decreased by 50 bps sequentially at 4.95%.

Uco Bank MD & CEO, AK Goel said, having successfully made a turnaround, the bank was now on a growth path. “Despite the current situation, we managed to disburse close to Rs 3,000 crore in the June quarter. Even if we can maintain disbursements at these levels, then we should be able to post 5-10% credit growth in the current financial year. But we expect the situation to improve moving forward,” Goel added.

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