Uco Bank narrows Q1 net loss to Rs 634 crore

By: | Published: August 11, 2018 2:18 AM

Public sector lender Uco Bank on Friday said it has narrowed its net loss to Rs 633.88 crore for the first quarter ended June 30 against a net loss of Rs 663.02 crore for the same period a year ago, buoyed by a healthy growth in operating profit.

UCO, Public sector, operating profit, non-performing assets, stock exchange filing, marketUco Bank’s operating profit grew 94% year-on-year at Rs 1,182.17 crore compared with Rs 609.08 crore during the corresponding period last fiscal, led by a 52% y-o-y jump in net interest income (NII) at Rs 1,228.02 crore.

Public sector lender Uco Bank on Friday said it has narrowed its net loss to Rs 633.88 crore for the first quarter ended June 30 against a net loss of Rs 663.02 crore for the same period a year ago, buoyed by a healthy growth in operating profit. The city-based bank, which is under the prompt corrective action (PCA) of the Reserve Bank of India, has also pruned the losses substantially on a quarter-on-quarter basis. Its net loss for the fourth quarter last fiscal had stood at Rs 2,134.36 crore.

During the June quarter, gross non-performing assets (NPAs) in absolute term declined 2.5% q-o-q to Rs 29,786.41 crore from Rs 30, 549.92 crore in the March quarter last fiscal, according to a stock exchange filing. Gross NPAs as a percentage of total loans, however, rose 107 basis points (bps) to 25.71% from 24.64% during the previous quarter. During the period under review, net NPA ratio fell 36 bps sequentially at 12.74%.

Uco Bank’s operating profit grew 94% year-on-year at Rs 1,182.17 crore compared with Rs 609.08 crore during the corresponding period last fiscal, led by a 52% y-o-y jump in net interest income (NII) at Rs 1,228.02 crore. Its non-interest income, however, witnessed a decline of 33.71% y-o-y at Rs 629.08 crore, owing to lower treasury gains.

As a result, total income of the bank during the April-June period rose by a mere 2.92% y-o-y to Rs 4,360.88 crore. For the June quarter of FY19, provisions for NPAs grew 69.26% to Rs 2,038.33 crore from Rs 1,204.25 crore for the corresponding period of FY18. The lender said, as per the RBI directions, it was required to make additional provisions with respect to accounts under Insolvency and Bankruptcy Code (IBC) proceedings.

“Accordingly, the bank has made additional provision of Rs 627.79 crore in respect of all NCLT-admitted borrower accounts,” it said. For the state-run bank, provision coverage ratio for non-performing loans was 65.15% as on June 30, 2018. Notably, at the end of June quarter this fiscal, the bank’s total capital ratio as per the Basel-III requirement declined to 9.18% against 10.94% at the end of March quarter last fiscal.

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