The Hindu Business Line : UCO Bank Q2 net rises 36%

Kolkata, Oct. 31 Backed by a good recovery from written off accounts and an increase in net interest income, UCO Bank has posted 36 per cent growth in net profit at Rs 150 crore for the quarter ended September 30, 2008, up from Rs 110 crore during the corresponding quarter last year.

Net profit for the first half increased by 17 per cent at Rs 284 crore (Rs 243 crore).

“The increase in net profit is mainly on account of better NPA management and increase in NII,” said Mr S.K. Goel, Chairman and Managing Director, UCO Bank.

The bank recovered Rs 36.68 crore from written off accounts during the quarter under consideration. Net non-performing assets of the bank declined to 1.61 per cent (2.26 per cent).

Net interest income during the quarter grew by 16 per cent at Rs 412 crore, against Rs 356 crore. Net interest margin was at 1.9 per cent.

Total income increased by 26 per cent to Rs 2,188 crore (Rs 1,734 crore). Capital adequacy ratio was at 10.25 per cent. Total business grew 20 per cent to Rs 1,41,397 crore (Rs 1,17,994 crore).

Deposits grew by 17 per cent to Rs 82,019 crore (Rs 70,292 crore), while advances grew by 24 per cent to Rs 59,378 crore (Rs 47,702 crore).

“Our focus is on low cost CASA deposits. We would want CASA to constitute 35 per cent of total deposits,” Mr Goel said.

There might not be any immediate revision in interest rates on advances and deposits, he said.

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