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An over three-fold rise in provisioning dragged down the profitability of Kolkata-based UCO Bank.
The bank’s net loss widened to ₹2,134 crore for the quarter ended March 31, 2018, compared to a net loss of ₹588 crore in the same period last year.
Provisioning for the quarter under review was at ₹2,239 crore, compared to ₹701 crore in the same period last year. As per the directions by the RBI, banks have to make additional provision towards accounts under insolvency.
Accordingly, UCO Bank has made provision of ₹426 crore during the quarter in respect of all NCLT-admitted borrower accounts, the bank said in its note on the audited financial results.
Gross NPA increased to 24.64 per cent (17.12 per cent), while net NPA grew to 13.10 per cent (8.94 per cent). Operating profit dropped close to 6 per cent at ₹112 crore (₹119 crore).
Net interest income increased by 33 per cent at ₹808 crore (₹609 crore). Other income dropped 77 per cent at ₹67 crore (₹292 crore). The bank’s net loss for the year ended March 31, 2018, widened to ₹4,436 crore (₹1,851 crore).
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