UCO Bank profit declines 6.8%

A decline in treasury profits has pulled down UCO Bank's operating profit to Rs 250 crore in the first quarter of the current fiscal against Rs 267 crore in the previous year "" a 6.8 per cent decline.

The bank however declared marginal 4.41 per cent rise in net profit at Rs 142 crore against Rs 136 crore in the previous period.

The rise in net profit was primarily due to a 20 per cent rise in net interest income to Rs 336 crore against Rs 280 crore in 2003-04. UCO witnessed a 12 per cent rise in interest income at Rs 842.22 crore against Rs 751.65 crore in the previous period.

The Bank reported a 22.71 per cent growth in deposit base to Rs 38,881 crore, while advances touched Rs 21, 375 crore "" a 29.34 per cent rise.

Its gross non performing assets however declined to 3.35 per cent while gross NPA touched 6.49 per cent in the first quarter of 2004-05. UCO has targeted a 3 per cent net NPA by March 2005

UCO managed to cover as much as 87 per cent of its business through computerization. It has also appointed IIM Bangalore for implementing its core banking solution that targets networking its top 200 branches in the first phase.

The bank is also trying to accelerate growth in farm credit through its large network. It has also firmed up plans of opening representative office in Malaysia and at present is involved in talks with a few banks and exchange houses which would act as its agent for foreign remittances.