UCO Bank clocks near 4-fold jump in profit; plans branch expansion

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Kolkata: State-owned Uco Bank reported a near 4-fold jump in net profit at Rs 312 crore in the fourth quarter ending March 31, riding on lower provisions, which more than halved in line with asset quality improvement.

Net profit was Rs 80 crore in the year-ago period. The bank set aside Rs 466 crore as the provision (other than taxes) and contingencies, which were 53% lower than Rs 982 crore in the comparative quarter last year.

Operating profit fell nearly 5% at Rs 950 crore against Rs 996 crore over the same period on lower total income at Rs 4362 crore compared with Rs 4637 crore.



Net interest income rose 17% to 1652 crore. However, other income fell to Rs 589 crore against Rs 719 crore on account of lower treasury income as the bank had to book Rs 200 crore of mark to mark loss due to the hardening of yield.

Its advances grew 9.6% year-on-year to Rs 1.30 lakh crore at the end of March. The gross non-performing assets ratio improved to 7.89% against 9.59% a year back. The net NPA ratio was at 2.70% against 3.94%. The provision coverage ratio improved to 91.44% from 88.4% earlier.

“We aim to bring down gross NPA to 6% and net NPA to less than 2% by March 2033,” Prasad said.

The bank which came out of Reserve ‘s prompt corrective action last September is now planning to open 200 branches this fiscal to its current tally of 3073 as part of its expansion plan.

Prasad said that the board would consider dividend for FY22 before its annual general meeting for shareholders.



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