UCO Bank Q2 net rises 145 per cent at Rs 504.52 cr

At the end of March 31, 2022, slippages were to the tune of Rs 6,000 crore.

Post-tax profit of public sector UCO Bank increased 145 per cent at Rs 504.52 crore during the second quarter of the current fiscal against Rs 205.4 crore in the similar previous similar period.

The Kolkata-based lender said in a regulatory filing that the operating profit of the bank during the quarter decreased to Rs 1,190 crore as compared to Rs 1,334.2 crore in the previous similar period.

MD & CEO of UCO Bank S S Prasad said, ''This is one of the best quarters of the bank in recent times. The bank came out of the Prompt Corrective Action (PCA) of the Reserve Bank of India four years after it was initiated due to high NPAs and negative returns on assets.'' Prasad told reporters that the total business of the bank at the end of the second quarter stood at Rs 3,77,304 crore, with total advances at Rs 1,42,156 crore.

Domestic revenues of the bank during the second quarter stood at Rs 4,794.76 crore while international revenues stood at Rs 170.08 crore.

The capital adequacy ratio of the bank at the end of the second quarter stood at 14.02 per cent, registering a marginal decline from 14.31 per cent in the corresponding previous period.

The Gross NPA of the lender declined to 6.58 per cent at the end of the second quarter from 8.98 per cent, while the net NPA stood at 1.99 per cent from 3.37 per cent in the previous similar period.

Prasad said, ''NPAs of the bank have declined as recovery was higher than slippages. At the end of March 31, 2022, slippages were to the tune of Rs 6,000 crore. During the first and second quarters of the current fiscal, it came down to Rs 500 crore, while the recovery was Rs 930 crore''.

Prasad said that outlook for recovery is good.

UCO bank restructured MSME accounts 25,255 with an outstanding amount of Rs 1433.70 crore as on September 30, 2022.

The net interest margin (NIM) of the bank during the quarter stood at 2.84 per cent, Prasad said.

''Going forward, the NIM is expected to go up and a conservative estimate is 2.9 per cent,'' he added.