State-run Uco Bank on Wednesday reported that its net loss widened by over 50% year-on-year to Rs 663.02 crore for the first quarter ended June 30, from Rs 440.56 crore for the same period a year ago due to lower operating profit as its total income declined. In the fourth quarter last fiscal, the city-based lender had posted a net loss of Rs 582.08 crore. In May, the Reserve Bank of India (RBI) initiated prompt corrective action (PCA) for the bank in view of high non-performing assets and negative return on assets.
The bank’s asset quality worsened further in the June quarter as its gross non-performing assets (NPAs) in absolute term rose over 11% q-o-q to Rs 25,054.21 crore from Rs 22540.95 crore for the March quarter last fiscal, according to a BSE filing. Its gross NPAs soared by close to 11% on a y-o-y basis from Rs 22,597.70 crore in the corresponding quarter a year ago. During the period under review the public sector bank’s total income saw 10.4% y-o-y dip at Rs 4237.04 crore against Rs 4727.93 crore in the year-ago period. Operating profit fell close to 25% y-o-y at Rs 609.08 crore as net interest income also declined by 16.6% y-o-y at Rs 841.47 crore. Provisions and contingencies increased marginally by 1.7% y-o-y to Rs 1272.10 crore from Rs1250.50 crore in the corresponding period of FY17.
The bank’s gross NPA as a percentage of total loans rose to 19.87% in the June quarter this fiscal from 17.19% during the same period previous fiscal. In March quarter last fiscal gross NPA ratio was at 17.12%. Significantly, Uco Bank has one of the highest NPA ratios across the country’s banking industry. The lender’s net NPA ratio also rose to 10.63% from 10.04% in the year-ago period. Its net NPA ratio was at 8.94% at the end of fourth quarter last fiscal.