UCO Bank narrows Q3 loss to Rs 998.74 crore

By: | Updated: February 9, 2019 5:06 AM

UCO Bank on Friday reported a marginal decline in its net loss for the quarter ended December 31, 2018 to Rs 998.74 crore, against a net loss of Rs 1,016.43 crore for the same period a year ago, thanks to a Rs 520-crore writeback of provisions for investment.

UCO Bank UCO Bank investors, UCO Bank investment, UCO Bank bonds, invest in bonds, mutual funds, tax saving, Reserve Bank of India, RBI, UCO Bank shares, UCO Bank stocks

UCO Bank on Friday reported a marginal decline in its net loss for the quarter ended December 31, 2018 to Rs 998.74 crore, against a net loss of Rs 1,016.43 crore for the same period a year ago, thanks to a Rs 520-crore writeback of provisions for investment.

The state-run lender lender, which is under the prompt corrective action (PCA) of the Reserve Bank of India, had reported a net loss of Rs 1,136.44 crore for the second quarter of the current fiscal.

The operating profit during the December quarter witnessed a 3.38 percent year-on-year rise to Rs 381.41 crore from Rs 368.95 crore in the year-ago period, with net interest income (NII) rising close to 1 percent y-o-y to Rs 826.60 crore.

During the October-December period, gross non-performing assets (NPAs) in absolute terms rose 5.2 percent quarter-on-quarter to Rs 31,121.79 crore, from Rs 29,581.49 crore in the July-September period, according to a stock exchange filing. Gross NPAs as a percentage of total loans rose 202 basis points (bps) to 27.39 percent from 25.37 percent during the previous quarter. During the period under review, net NPA ratio increased 51 bps sequentially at 12.48 percent.

Talking to FE, Uco Bank managing director and chief executive officer Atul Kumar Goel said gross NPAs during the quarter under review increased mainly on account of IL&FS default and accretion of fresh bad loans in the agriculture sector. “I was having an exposure of around `1,005 crore to the IL&FS group, and of that Rs 1,000 crore has slipped into NPA in December quarter. Around `800 crore slippages happened in the agriculture sector also,” Goel said.

READ ALSO | Flight cancellation becomes expensive; Jet Airways raises cancellation fees

Fresh slippages during the third quarter stood at Rs 3,466 crore.

Provisions and contingencies stood at Rs 1,399.56 crore, up around 1 percent y-o-y. The bank’s provisions for non-performing assets stood at Rs 2,243.85 crore, which increased by 33.37 percent year-on-year. The provision coverage ratio for the December quarter increased to 69.49 percent from 67.61 percent for the same quarter of FY18.

The CASA ratio improved to 37.22 percent as on December 31, 2018 from 32.93 percent as on December 31, 2017. Net interest margin (NIM) as on December 31, 2018 stood at 1.4 percent.

The bank’s CASA will be improved ‘significantly’ for the March quarter this fiscal, as UCO Bank has been getting ‘substantial amount’ from January after the Iran oil import payments system stabilised, the MD added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition