Note ban may offset impact of falling Iran deposits at UCO Bank

Deposits have come down from a peak of around Rs 25,000 cr to Rs 2,200 cr at present

A few quarters ago, UCO Bank posted a huge loss, turning out to be one of the worst-performing public sector banks (PSBs). While non-performing assets (NPAs) weighed heavy on the balance sheet, its weaning Iran deposits added to the cost of funds. 

Deposits from the Iran accounts have come down from a peak of around Rs 25,000 crore to Rs 2,200 crore at present. But, after demonetisation, the bank has received close to Rs 24,000 crore as deposits, which would help the lender to offset the impact of falling deposits from the Iran accounts. 

While deposits from Iran were zero