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UCO Bank today said its net profit for the quarter ended December 31, 2013 increased by 207% from a year earlier to Rs 315 crore as it earned more interest income, improved margin and pared loan loss provisions.
Net interest income, or the difference between interest income and interest expense, grew by33% from a year ago to Rs 1,566 crore in October-December period. The bank's domestic net interest margin expanded 64 basis points, on a year-on-year basis, to 3.06% at the end of the quarter.
"Our strong operating performance helped earnings growth during the quarter. The bank has taken a lot of strategic initiatives that are paying dividends. We have shifted focus to low-risk retail advances, stepped up loan recovery and selling non-performing assets (to asset reconstruction companies)," Arun Kaul, chairman and managing director of UCO Bank, said in his post-earnings comments.
The bank halved its loan loss provisions from a year earlier to Rs 204 crore in October-December quarter as asset quality improved. Gross non-performing asset (NPA) ratio declined by 33 basis points from a year ago to 5.20%, while net bad loan ratio fell by 26 basis points on a year-on-year basis to 3.06% at the end of the quarter. The bank sold Rs 322 crore bad loans during the third quarter and has put another Rs 1,900 crore in the block.
The state-run lender restructured Rs 1,419 crore during the three-month period. The total restructured loan portfolio was Rs 12,870 crore at the end of December, 2013. "Our loan restructuring loan pipeline is not big. We have restructured almost all the large accounts that had applied for debt restructuring," Jai Kumar Garg, executive director of UCO Bank, said.
Advances increased by 16.5% from a year earlier to Rs 141,457 crore at the end of December, 2013. Total deposits were up 13.4% from a year ago at Rs 192,406 crore. The share of low-cost current account savings account (CASA) deposits was 33.4%.
Garg said the bank has received Rs 200 crore of capital from the government. UCO Bank closed the quarter with a capital adequacy ratio of 11.16% as per Basel III rules.
Net interest income, or the difference between interest income and interest expense, grew by33% from a year ago to Rs 1,566 crore in October-December period. The bank's domestic net interest margin expanded 64 basis points, on a year-on-year basis, to 3.06% at the end of the quarter.
"Our strong operating performance helped earnings growth during the quarter. The bank has taken a lot of strategic initiatives that are paying dividends. We have shifted focus to low-risk retail advances, stepped up loan recovery and selling non-performing assets (to asset reconstruction companies)," Arun Kaul, chairman and managing director of UCO Bank, said in his post-earnings comments.
The bank halved its loan loss provisions from a year earlier to Rs 204 crore in October-December quarter as asset quality improved. Gross non-performing asset (NPA) ratio declined by 33 basis points from a year ago to 5.20%, while net bad loan ratio fell by 26 basis points on a year-on-year basis to 3.06% at the end of the quarter. The bank sold Rs 322 crore bad loans during the third quarter and has put another Rs 1,900 crore in the block.
The state-run lender restructured Rs 1,419 crore during the three-month period. The total restructured loan portfolio was Rs 12,870 crore at the end of December, 2013. "Our loan restructuring loan pipeline is not big. We have restructured almost all the large accounts that had applied for debt restructuring," Jai Kumar Garg, executive director of UCO Bank, said.
Advances increased by 16.5% from a year earlier to Rs 141,457 crore at the end of December, 2013. Total deposits were up 13.4% from a year ago at Rs 192,406 crore. The share of low-cost current account savings account (CASA) deposits was 33.4%.
Garg said the bank has received Rs 200 crore of capital from the government. UCO Bank closed the quarter with a capital adequacy ratio of 11.16% as per Basel III rules.
