IOB, Syndicate Bank & UCO Bank Q2 results

IOB net rises 17%
Indian Overseas Bank (IOB) has reported a 17.10 per cent increase in net profit in the quarter ended September 30 to Rs 206.15 crore as against Rs 176.04 crore a year ago. Total income rose 5.21 per cent to Rs 3,074.73 crore from Rs 2,922.34 crore last year. Non-interest income stood at Rs 274.54 crore as against Rs 372.39 crore last year.

The bank’s net interest margin rose to 3.02 per cent from 2.73 per cent a year ago. Net interest income rose from Rs 784.62 crore to Rs 956.30 crore, a 21.88 per cent rise. The bank’s current account savings account ratio improved from 30.80 per cent to 33.09 per cent. Gross non-performing assets were Rs 3,326 crore as against Rs 2,685 crore on September 30, 2009.

Syndicate Bank net up 34 per cent
Mangalore-headquartered Syndicate Bank has posted a 34 per cent rise in net profit to Rs 237.10 crore in the second quarter ending September on the back of higher net interest income. Net interest income rose 85 per cent to Rs 1,108 crore compared to Rs 598 crore in the same period of last year as cost of deposits fell from 6.44 per cent to 5.14 per cent. Total income rose five per cent to Rs 2972.80 crore. Operating profit more than doubled to Rs 778 crore from Rs 380 crore last year.

However, this didn’t reflect much in the bottom line due to a sharp rise in provisioning. Provisioning rose 3.4 times rise to Rs 449.63 crore as compared to Rs 132.47 crore in the same period last year.

UCO Bank profit falls 42%
High non-performing assets (NPAs) dragged UCO Bank’s net profit by 42.78 per cent in the second quarter of the financial year to Rs 119 crore, as against Rs 208 crore in the same period last year. The bank reported fresh slippages of Rs 678 crore, as against Rs 273 crore in the quarter ended September 2009, a rise of about 148 per cent.

Out the total slippages last quarter, about Rs 141 crore was on account of non-recovery from the agriculture debt relief scheme. NPAs were Rs 1,005 crore, as against Rs 710 crore in the same period last year. UCO Bank was re-examining the option of going for a follow-on-public offer, as its capital adequacy ratio improved to 13.60 per cent, said Chairman and Managing Director Arun Kaul.