Q3 profit at UCO Bank more than doubles to Rs. 653 billion

Q3 profit at UCO Bank more than doubles to Rs. 653 billion

In the quarter that ended in December 2022, UCO Bank's earnings increased by 110% to Rs 653 crore, thanks to a rise in interest revenue and a decrease in bad loans.

In the last quarter of FY23, the bank intends to sustain the growing trend.

In the same quarter of the year before, it had a net profit of Rs 310 crore.

"We anticipate that advances and deposits will continue to expand strongly in the fourth quarter of the year. Advances have increased by 20.5% during the last three months. With rate changes, strong deposit growth is anticipated "Soma Sankara Prasad, MD & CEO of UCO Bank, remarked.

The CEO said that the net interest margin has been steadily rising over the course of each quarter and that moving ahead, it should be between 3 and 3.01 percent.

"Recovery outperforms new slippages. From Rs 1,500 crore in the past, our average quarterly slippages have now dropped to Rs 500 crore. The write-back from written-off accounts for this quarter was Rs 458 crore "said Prasad.

The bank saw an improvement in asset quality, with gross NPAs (Non-Performing Assets) decreasing to 5.63% of gross loans from 8% at the end of the third quarter of 2021–22.

Net NPAs also decreased, from 2.81 percent in the same quarter last year to 1.66 percent this quarter.

As a consequence, bad loan provisions drastically decreased from Rs 565 crore in the same time last year to Rs 220 crore this year.

According to a regulatory statement by the bank, total revenue grew to Rs 5,451 crore in the quarter from Rs 4,638 crore in the same quarter last year.

In comparison to the same quarter a year earlier, interest income increased to Rs 4,627 crore from Rs 3,919 crore.

The capital adequacy ratio, however, dropped from 14.56 percent to 14.32 percent in the December quarter.

The institution said that the Reserve Bank levied a fine of Rs 88 lakh during the quarter under review.