UCO Bank targets Rs 1,350 cr profit this fiscal

UCO Bank is targeting to clock a profit of Rs 1,350 crore during the current financial year, its executive director Ajai Kumar said today.

"We are aiming at a business of Rs 2.45 lakh crore in 2010-11 and a profit of Rs 1,350 crore," Kumar told shareholders at the bank's seventh annual general meeting here.

In the last fiscal, the bank's business touched Rs two lakh crore and net profit at Rs 1,012 crore.

Kumar said the base rate fixed by the bank is eight per cent. The cost of funds was the key to determine the base rate.
     
He said increasing CASA's (current account savings accounts) share in total deposits is important, to keep the cost of funds low.
     
CASA is a base from where banks get cheap funds and thereby a higher ratio of these funds enables banks to bring down their costs.
     
At present, CASA deposits stood at 24 per cent. Kumar said that the target was to raise it to 35 per cent.
     
He said that UCO would soon launch mobile-based banking transaction services. The bank would aggressively go for overseas expansion.
     
UCO would also install 500 ATMs across the country, he said.
     
He said that the bank would hire 1,000 clerks and restructure the bank within a proper HR framework.