Higher provisioning for NPAs and provisioning for employee pension benefits led the Kolkata-based UCO Bank to report a 40 per cent dip in profit to Rs 226 crore during the fourth quarter of the last fiscal.
UCO Bank reported a net profit of Rs 380 crore during the corresponding period in the previous fiscal.
Operating profit went up by 3 per cent to Rs 580 crore (Rs 566 crore).
For the year ended March 31 2011, net profit fell by over 10 per cent to Rs 907 crore (Rs 1,012 crore) despite an increase in operating profit by 58 per cent.
Net interest income (the difference between interest earned and interest paid) for the 2010-11 grew by 65 per cent. Net interest margin improved from 2.19 per cent to 3.07 per cent.
Non-interest income of the year grew by 15 per cent to Rs 833 crore (Rs 723 crore).
The board has also proposed a dividend of 20 per cent – Rs 2, per Rs 10 equity share for FY11 (Rs 1.50 for FY 2010).
“System generated NPAs and older NPAs led to higher provisioning. We have deliberately taken steps for provisioning of pension,” Mr Arun Kaul, Chairman and Managing Director, UCO Bank, said.
“However, if you consider our other parameters the performance has been good,” he added.
On Thursday, UCO Bank shares closed down 9.02 per cent at Rs 104.45 on the BSE.