UCO Bank has reported a 107.33 per cent increase in net profit to Rs 171.63 crore for the quarter ended December 31, 2008, as against Rs 82.78 crore for the same period last year.
The increase in profit was mainly on account of treasury income of nearly Rs 156 crore in the quarter, against about Rs 67 crore in the third quarter of the last fiscal, and Rs 5 crore for the second quarter of the present fiscal. The total income of the bank also increased to Rs 2,433.52 crore in the quarter under review, from Rs 1824.73 crore in the same quarter last year, a rise of 33.36 per cent. Out of this, the interest income of the bank increased from about Rs 2,126 crore in the third quarter of this fiscal, against nearly Rs 1,676 crore for the same period last year, an increase of 26.85 per cent. Th non-interest income of the bank increased to nearly Rs 307 crore, from Rs 149 crore in the same quarter last year, an increase of 106.04 per cent. In the third quarter of the fiscal, the bank also made a total provision of Rs 230 crore, against Rs 115 crore in the same period last year. Out of this, nearly Rs 147 crore was for net non-performing assets and Rs 75 crore for salaries and wages.
The gross NPA to total advances of the bank till December was 2.42 per cent, against 3.33 per cent at the end of December 2007. The gross NPA of the bank has been brought down to Rs 1,660 crore, as on December 2007, to Rs 1,475 crore as on December 2008. The net NPA of the bank has come down to Rs 1,171 crore or 2.37 per cent, to net advances, to Rs 771 crore or 1.28 per cent to the net advances in the same period last fiscal. According to S K Goel, chairman and managing director of the bank, the bank has set a target of 20 per cent increase in deposits and 22 per cent in advances this fiscal. The bank sold NPA assets worth Rs 42 crore in the the quarter under review. The net interest margin (NIM) for the period was 1.92 per cent, against 1.76 per cent in the same period last year.
The credit disbursal in the third quarter of the present fiscal was Rs 2,500 crore, deposits grew by almost Rs 6,000 crore.