The Hindu Business Line : UCO Bank net profit doubles to Rs 435 cr

UCO Bank's net profit in 2003-04 jumped by 110 per cent to Rs 435.41 crore (Rs 207.49 crore in 2002-03) and the operating profit by 52 per cent to Rs 948.4 crore (Rs 624.04 crore). The provisions at Rs 513 crore (Rs 417 crore) increased by more than 23 per cent.

The board of directors of the bank has recommended 10 per cent dividend subject to the Reserve Bank of India's approval.

The proposed dividend would amount to Rs 79 crore and represent 18 per cent of the net profit.

Mr V.P. Shetty, CMD of UCO Bank, while briefing newspersons about the bank's performance in 2003-04, pointed out that the net interest income increased by 35.37 per cent to Rs 1,194 crore (Rs 882 crore) and other income by 2.63 per cent to Rs 625 crore (Rs 609 crore).

The income from treasury operations amounted to Rs 351 crore, recording a marginal decline compared with Rs 354 crore in the previous year.

The total income rose by 9.41 per cent to Rs 3,722 crore.

At the same time, staff expenses at Rs 667 crore (Rs 690 crore) dropped by more than 3 per cent.

Other operational expenses, however, increased by more than 15 per cent to Rs 204 crore (Rs 177 crore).

The total non-interest expenditure at Rs 871 crore (Rs 867 crore) showed a small increase of 0.46 per cent.

The net NPA ratio declined to 3.65 per cent (4.36 per cent) and gross NPA ratio to 6.93 per cent (8.2 per cent).

The capital adequacy ratio improved to 11.88 per cent (10.04 per cent) and spread to 3.11 per cent (2.79 per cent).

The return on assets improved to 1.13 per cent (0.66 per cent), the business per employee to Rs 2.5 crore (Rs 1.97 crore) and EPS at Rs 6.23 was up by 104 per cent from Rs 3.05 calculated on the basis of post issue fully diluted equity based on earnings in 2002-03.

The present book value per share was Rs 18.7, up from Rs 14.38 in March 2003.

During the year under review, the bank's total business at Rs 60,587 crore (Rs 47,926 crore) showed a growth of 26.42 crore compared with 19.07 per cent in the previous year.

Total deposits at Rs 39,244 crore (Rs 31,343 crore) showed a growth of more than 25 per cent, total advances at Rs 21,343 crore (Rs 16,583 crore) a growth of more than 28 per cent.

And investments at Rs 17,652 crore (Rs 14,179 crore), a growth of 24.49 per cent.

Giving a projection for the current fiscal (2004-05), Mr Shetty said the total business should grow to Rs 75,000 crore, operating profit to Rs 1,200 crore and net profit to more than Rs 500 crore.

However, the new wage settlement in the banking industry would slap an additional burden on the bank and for this a provision of Rs 56 crore had been made in the current year.

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