Money & Banking

UCO Bank posts four-fold rise in Q1 profit at ₹102 crore

Our Bureau Kolkata | Updated on July 28, 2021

Atul Kumar Goel Managing Director and Chief Executive Officer of UCO Bank

Buoyed by higher net interest income and other income

Riding on the back of a higher net interest income and other income UCO Bank saw over four-fold rise in net profit at ₹102 crore for the quarter ended June 30, 2021, as against ₹21 crore same period last year.

Net interest income increased by 15 per cent at ₹1,460 crore from ₹1,267 crore same period last year.

“There has been an improvement across all parameters including net interest income, other income, treasury income and recovery from written off accounts. This has given a boost to our operating profit and net profit,” Atul Kumar Goel, MD and CEO, UCO Bank, said at a virtual press conference here on Tuesday.

Other income rises

Other income during the period under review increased by around 25 per cent to ₹970 crore from ₹774 crore same period last year.

On a sequential basis, net profit was up by around 28 per cent as compared to ₹80 crore during the quarter ended March 31, 2021.

The bank’s advances during the quarter under review grew by around five per cent at ₹1,20,849 crore against ₹1,15,236 crore same period last year. Goel expects credit offtake to pick up during the subsequent quarters backed by a steady demand.

“We have recovered from the Covid induced slowdown witnessed in April and May. And things are expected to improve. There is a lot of demand (for credit) from corporates, NBFCs, MSME etc. We are hoping for a growth of around 10 per cent in credit this year,” he said.

Total deposits grew by around nine per cent at ₹2,12,097 crore as on June 30, 2021, as against ₹ 1,95,119 crore same period last year.

NPAs decline

Gross non-performing assets (NPA) reduced to ₹11,322 crore as on June 30, 2021 from ₹16,576 crore last year. Gross NPA as a percentage to advances also came down to 9.37 per cent as against 14.38 per cent last year.

Net NPA also reduced to 3.85 per cent (4.95 per cent).

The bank’s provision coverage ratio increased to 88.53 per cent as on June 2021, up from 86.50 per cent same period last year.

Total provisions increased by 21 per cent to ₹1,127 crore (₹932 crore). Provision for NPA increased by nearly 50 per cent at ₹845 crore (₹565 crore).

Capital adequacy ratio stood at 14.24 per cent and CET-I ratio at 11.32 per cent as June 30.

Published on July 27, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like