Uco Bank posts 20.7% business growth in Q3

UCO Bank has recorded 22.05 per cent growth in advances and 19.77 growth in deposits for the quarter ended December 31, 2009.

“The bank recorded an overall business growth of 20.70 per cent in the third quarter, taking the total business of the bank to Rs 1.78 lakh crore,” said S K Goel, chairman and managing director of UCO Bank at a press conference on the 67th foundation day of the bank.

The net interest margin of the bank in the last quarter was 2 per cent, against 1.76 per cent in the July- September quarter of this financial year.

The credit growth was driven by sectors like infrastructure, hospitality, real estate, power, road and telecom sectors, said Goel. The bank was planning to sell non-performing assets worth Rs 100 crore by February 2010.

“We have shed all the bulk deposits, and there has been a good savings on the interest payment. In the interest receivables side also, there has not been much change,” he said.

Goel said, Reserve Bank of India (RBI) might raise cash reserve ratio (CRR) by 100-200 basis points to tame the inflation in the next credit policy.

“In the last 15 days, surplus liquidity has come down. Surplus liquidity will not remain for long, as in the next RBI credit policy, the objective will be to curtail inflation. They may reduce CRR by 100-200 basis points,” he said.

The bank has also received RBI approval for a follow-on-public offer, releasing about 13.50 crore equity shares. Earlier, Goel had said that he expected to raise Rs 800 crore through the issue.

“The FPO proposal is lying with the government, and we expect to receive its approval in the next one or two days,” said Goel. UCO Bank is also planning to open 100 mobile banking branches across the country in the next one year, with the first to be rolled out at Amethi in Uttar Pradesh. UCO Bank has set a business target of Rs 2.02 lakh crore by the end of this financial year.