Kolkata based UCO Bank has registered a 122 per cent growth in operating profit at Rs 476 crore and a 500 per cent growth in net profit at Rs 165 crore in 2001-02. Profit from market operations at the bank stood at Rs 335 crore while profits from normal banking operations was Rs 141 crore.
The windfall gains from the stock market will not be available this year (2002-03), admitted bank chairman V P Shetty. This has forced UCO to scale down its targeted operating profit figure to Rs 400 crore and net profit to Rs 135 crore.
Cost of deposit for UCO was around 6.74 per cent which it managed to bring down from 7.35 per cent in 2000-01, and its spread stands at 2.66 per cent, down from 2.83 per cent in 2000-01.
The bank's operating profit as a percentage of average working funds was 1.74 per cent from 0.91 per cent in the previous fiscal. Net non performing assets was 5.45 per cent, while its yield on advances was 10.18 per cent.
Total business at the bank was set at Rs 48,000 crore, while its target for advances were set at Rs 30,000 crore and deposits at Rs 18,000 crore. This would translate into a 60 per cent credit-deposit (CD) ratio, against 51 per cent in the last fiscal.
UCO has also targeted a total business of Rs 1,00,000 crore five years from now. Deposits and advances at the end of the period were fixed at Rs 65,000 crore and Rs 35,000 crore respectively - this will however bring down its CD ratio to 53 per cent.
"In a bid to match its targets the bank will have to bring in necessary infrastructure to facilitate technology absorption, remodel its branches at major centres, create marketing support and undertake image building exercise," explained Shetty, while declaring the bank's result at a press conference today.
Net interest income at the bank was Rs 730 crore, while non interest income, including stock market operations was Rs 583 crore against Rs 298 crore in the previous period. Staff expenses and other operating expenses were Rs 837 crore against Rs 746 crore in the previous year. Total expenses at the bank stood at Rs 837 crore against Rs 746 crore.
Meanwhile, the bank has focused on a Rs 1,500 crore credit disbursement in the mid-market segment and will try to identifying large corporate for advancing short term loans at sub PLR rates in a market that is already crowded by large players like State Bank of India.
