UCO Bank on Friday reported a 2 per cent rise in net profit to ₹522 crore for first quarter of FY-15, over the ₹511 crore reported in the corresponding previous period.

The profit came on the back of a 21 per cent increase in total interest income to ₹5,073 crore; and a cut in provisioning by ₹224 crore to ₹571 crore between April and June. Other income, however, fell 30 per cent to ₹322 crore (₹462 crore).

“The decline in other income is because of reduced profit on treasury operations,” Arun Kaul, CMD, UCO Bank, said. The restructured loan portfolio stood at ₹12,844 crore as on June 30. It restructured loans worth ₹1,673 crore in the first three months of the fiscal. The Kolkata-based lender saw Q1 deposit growth of 14 per cent; advances grew 14.32 per cent.

Asset Quality

The bank, however, saw a substantial reduction in gross and net non performing assets (NPAs) both sequentially and on a year-on-year basis. Gross non performing assets came down nearly 12 per cent to ₹6,346 crore between April-June period in FY-15, as against the ₹7,178 crore during the same period last year. Gross NPA per cent too improved to 4.31 (5.58).

Similarly, net NPAs saw a dip of 15 per cent to ₹3,344 crore (₹3,939 crore). Sequentially both the gross and net NPAs came down by 4 per cent and 6 per cent respectively. Fresh NPA generation during the quarter stood at ₹592 crore; while recoveries stood at ₹784 crore.

“We sold bad assets worth of ₹265 crore till June and another ₹105 crore for the July to September (Q2) period to asset reconstruction companies,” a senior official said.

The bank is looking to sale around ₹900 crore worth of bad assets during FY-15.

Shares of UCO Bank closed at ₹101.10, down by 6.35 per cent, at the BSE on Friday.

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