UCO Bank has reported nearly 51 per cent drop in profit and sharp rise in non-performing assets in the first quarter of 2015-16.
It posted a net profit of ₹256.70 crore in the Q1 against ₹521.40 crore in the corresponding period of last year.
Bank's gross NPA shot up to 7.3 per cent from 4.31 per cent in Q1 of 2013-14. This is despite sale of some NPAs worth ₹115 crore to asset reconstruction companies during the quarter.
NPA additions in the first quarter were ₹1,252.98 crore (₹594 crore).
“Some large accounts facing difficulties contributed to the fresh slippages, 44 per cent of which were from restructured category. The maximum slippage were in power, textiles, manufacturing and real estate sector”, said Arun Kaul, Chairman and Managing Director, at the press conference held recently. The NPA provisioning was placed at ₹611.53 crore (₹19.55 crore).
Kaul said NPA provisions were made on four consortium loan accounts worth ₹1,183 crore also on the RBI annual inspection team’s direction. “There is difference of opinion. We are trying to sort out the differences. These were still considered by the bank as standard accounts, while RBI felt that these accounts should be treated as NPAs,” said Kaul.