UCO Bank logs net profit at Rs 35 cr in December quarter

By: |
January 25, 2021 2:14 PM

The Kolkata-headquartered lender had posted a net loss of Rs 960.17 crore in the same quarter of the previous fiscal year.

UCO bankWith regard to bank's exposure to Delhi Airport Metro Express Pvt Ltd (DAMEPL), UCO Bank said it has kept the account as standard as per Supreme Court order and RBI guidelines.

State-owned UCO Bank on Monday reported a net profit of Rs 35.44 crore in the third quarter ended December of the current fiscal year due to substantial fall in bad loans leading to lowering in provisioning requirements.

The Kolkata-headquartered lender had posted a net loss of Rs 960.17 crore in the same quarter of the previous fiscal year. Sequentially, there was a net profit of Rs 30.12 crore in the second quarter ended September 2020 of this fiscal.

Total income fell to Rs 4,466.97 crore in the October-December period of 2020-21 from Rs 4,514.21 crore in the same period of 2019-20, UCO Bank said in a regulatory filing.

Interest income was down by 4.5 per cent at Rs 3,602.59 crore, however, other income moved up by 16.3 per cent to Rs 864.38 crore. Bank’s asset quality witnessed substantial improvement as the gross non-performing assets (NPAs) fell to 9.80 per cent of the gross advances by end of December 2020 from 19.45 per cent a year ago. Value-wise, it fell to Rs 11,440.47 crore from Rs 22,139.65 crore.

The net NPAs too came down to 2.97 per cent (Rs 3,228.08 crore) from 6.34 per cent (Rs 6,199.65 crore). Thus, provisioning for bad loans and contingencies came down to Rs 1,298.96 crore during Q3FY21 from Rs 2,170.69 crore in the year-ago quarter.

With regard to bank’s exposure to Delhi Airport Metro Express Pvt Ltd (DAMEPL), UCO Bank said it has kept the account as standard as per Supreme Court order and RBI guidelines.

The bank said it has not treated Rs 194.14 crore against DAMEPL as NPA and has made provision of Rs 77.54 crore. The bank has made full provision of divergence in its assets classification and provisioning assessed by RBI in risk assessment report (RAR) for the financial year 2019-20, it said further.

The divergence in gross NPAs for FY20 stood at Rs 25 crore and that in net NPAs of Rs 10 crore, while the divergence in provisioning came in at Rs 15 crore. Divergence in other provision was of Rs 610 crore. Thus, the adjusted notional net loss for the fiscal ended March 2020, after taking into account the divergence in provisioning, rose to Rs 3,061.83 crore against the reported net loss of Rs 2,436.83 crore, as per the filing.

The NPA provisioning coverage ratio is 91.22 per cent as on December 31, 2020, the bank said. Stock of UCO Bank traded at Rs 13.25 apiece, up by 2.87 per cent from previous close on the BSE.

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