Money & Banking

Growth in core income helps UCO narrow loss to ₹892 cr

Our Bureau Kolkata | Updated on November 07, 2019

Riding on the back of higher other income and growth in core income, UCO Bank reported narrowing of net loss to ₹892 crore in the quarter ended September 30, 2019, against a loss of ₹1,136 crore in the same period last year.

Net interest income grew by 31 per cent to ₹1,267 crore for the quarter under review, when compared to ₹965 crore in the same period last year. Other income increased by 171 per cent to ₹729 crore, against ₹269 crore in the same period last year.

Operating profit grew by 139 per cent to ₹1,207 crore (₹506 crore). On a sequential basis, net loss was up from ₹601 crore reported in the first quarter of this fiscal.

The bank reported an overall improvement in asset quality, with both gross and net non-performing assets witnessing a decline. Gross NPAs, as a percentage of total loans, stood at 21.87 per cent, down from 25.37 per cent in the same period last year, while net NPAs came down to 7.32 per cent (11.97 per cent).

Bad-loan provisioning

Provisioning for bad loans and contingencies increased to ₹2,099 crore for the quarter under review, from ₹1,642 crore a year ago. During the quarter, the Central government infused ₹2,130 crore by way of preferential allotment of equity shares in the bank.

The bank is currently in the process of evaluating the option under new tax rules as amended by the government, and continues to recognise the taxes on income for the quarter and the half-year ended September, as per the earlier provisions of the Income-Tax Act, 1961, the bank said in its note to the stock exchanges on Thursday.

“The bank has recognised deferred tax asset of ₹8,086.37 crore on carry-forward losses up to March 31, 2019.

“During the quarter, the bank has recognised deferred tax assets of ₹542.47 crore,” UCO Bank said.

Published on November 07, 2019

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