UCO Bank Posts Net Loss of Rs 634 Crore in Q1 as NPA Becomes 1/4th of Advances
State-owned UCO Bank today reported a net loss of Rs 633.88 crore for the first quarter ended June 2018.
This first quarter loss, however, has narrowed both on the annual and sequential basis. During April-June period of 2017-18, its net loss stood at Rs 663.02 crore. While in the March quarter of FY2017-18, the loss was Rs 2,134.36 crore.
However, total income in April-June 2018 increased to Rs 4,360.88 crore from Rs 4,237.04 crore in the same period a year ago, the bank said in a regulatory filing.
Bank's asset quality worsened with the gross non-performing assets (NPAs) hitting 25.71 percent of gross advances as on June 30, 2018, as against 19.87 percent by end-June 2017.
In absolute value, the gross bad loans or NPAs stood at Rs 29,786.41 crores by the end of the first quarter of this fiscal, up from Rs 25,054.21 crore.
Net NPAs were 12.74 per cent (Rs 12,558 crore) as against 10.63 per cent (Rs 12,010.95 crore).
Thus the provisions for bad loans were raised substantially to Rs 2,038.33 crore for the June quarter of FY'19 from Rs 1,204.25 crore a year ago.
UCO Bank said provision coverage ratio for non-performing loans is 65.15 percent.
The bank said it was required to make additional provisions with respect to accounts under provisions of Insolvency and Bankruptcy Code.
"Accordingly, the bank has made an additional provision of Rs 627.79 crore in respect of all NCLT admitted borrower accounts," UCO Bank said.
The stock of the bank closed 3.23 percent down at Rs 19.45 on BSE.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)