A staff member works inside a commercial branch of the UCO Bank in Mumbai June 1, 2013. Fed up with a profitable textile company's failure to repay its loan, India's UCO Bank has taken its grievance public, placing newspaper ads last month that brand the industrialist owner of S. Kumar's Nationwide Ltd a defaulter. State Bank of India (SBI), Bank of India Ltd and Bank of Baroda are also preparing to name and shame corporate borrowers which are not paying them back, bank executives told Reuters. This aggressive tactic for dealing with bad debt marks a major departure from the traditional laid-back approach of Indian state lenders. Picture taken June 1, 2013. To match Story INDIA-BANKS/DEBT REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS) | Photo Credit: VIVEK PRAKASH
Riding on the back of a higher growth in net interest income and lower provisions, UCO Bank registered nearly 583 per cent rise in net profit at ₹205 crore for the quarter ended September 30, 2021, compared with ₹30 crore in the same period last year.
Net interest income (NII) grew by 15 per cent to ₹1,598 crore during the quarter under review, against ₹1,394 crore same period last year.
Provisions during the quarter came down by nearly 22 per cent to ₹1,019 crore (₹1,301 crore).
UCO Bank sees ‘improved investor appetite’
Out of PCA framework
The bank had recently come out of the Prompt Corrective Action (PCA) measure of Reserve Bank of India following the compliance of norms by maintaining minimum regulatory capital, net NPA, and leverage ratio on an ongoing basis.
RBI takes UCO Bank out of PCA framework
The operating profit increased by 24 per cent at ₹1,334 crore (₹1,076 crore).
Gross non-performing asset (NPA) as a percentage of total advances declined to 8.98 per cent (11.62 per cent); while net NPA came down to 3.37 per cent (3.63 per cent).
Published on October 28, 2021
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