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Riding on the back of an improvement in asset quality and lower provisioning, UCO Bank registered 146 per cent growth in net profit at ₹505 crore for the quarter ended September 30, 2022, against ₹205 crore in the same period last year.
Net interest income increased by 11 per cent to ₹1,770 crore (₹1,598 crore).
According to Soma Sankara Prasad, CEO and MD of UCO Bank, this has been one of the best quarters in the history of the bank. The bank witnessed a steady improvement in asset quality and better recovery.
More recovery
“Fresh slippages are coming down and stood at around ₹578 crore in Q2FY23. Our recovery has been more than fresh slippages,” he told newspersons at a press conference here on Thursday.
The bank’s gross non-performing assets (NPA) as a percentage of advances declined to 6.58 per cent (8.98 per cent). Sequentially it came down from 7.42 per cent as on June 30, 2022.
Net NPA came down to 1.99 per cent (3.37 per cent). The provision coverage ratio increased to 92.90 per cent (90.02 per cent).
The bank had a cash recovery of ₹384 crore and upgradation to the tune of ₹176 crore and a write-off of ₹397 crore during the quarter.
Other income declined 17 per cent to ₹780 crore (₹936 crore).
Total business increased by nearly 13 per cent to ₹3,77,305 crore. Total advances grew by nearly 17 per cent to ₹1,42,156 crore while deposits grew by 10 per cent at ₹2,35,149 crore. CASA (current account and savings bank account) deposits stood at around 40 per cent as on September 30,2022.
The net interest margin stood at 2.84 per cent as on September 30, 2022.
The bank’s scrip closed at ₹14.44, up 5.25 per cent on the BSE on Thursday.
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