 "UCO Bank posts Q3 net loss of Rs 437 crore")
Kolkata-based UCO Bank posted a net loss of about Rs 437 crore for the quarter ended December 31, 2016, against a net loss of about Rs 1,497 crore in the corresponding quarter of the previous financial year.
Sequentially, the bank saw an increase in net loss, as in the second quarter of the current financial year (2016-17) it was around Rs 385 crore.
The asset quality of the bank deteriorated in the last quarter, as its gross non-performing assets (NPAs) increased to 17.18 per cent of gross loans, against 10.98 per cent, in the same quarter of the previous financial year (FY16), and 16.51 per cent in the second quarter of the current one (FY17).
According to R K Takkar, managing director and chief executive officer, UCO Bank, one of the reasons for the rise in NPAs was a lower upgrade of NPA into standard assets.
In the quarter ended September 30, 2016, accounts worth Rs 1,792 crore were upgraded from NPAs to standard assets, while in the last quarter the upgrade was to the tune of Rs 857 crore, Takkar told Business Standard.
“There has been only a marginal rise in loss, compared to the previous quarter. The increase has mainly been on account of ageing impact of NPAs,” said Takkar.
The net NPA of the bank stood at 8.99 per cent of net loans in the last quarter, against 6.51 per cent in the corresponding quarter of the previous financial year and 8.83 per cent in the second quarter of the current financial year.
In absolute terms, the net NPA of the bank in the last quarter stood at about Rs 10,545 crore, against Rs 8,409 crore in the same period of the last financial year.
The total provisions of the bank in the last quarter stood at about Rs 1,326 crore, against about Rs 2,361 crore in the same period last financial year.
In the last quarter, the bank raised around Rs 750 crore as additional tier-I bonds, with a coupon rate of around 11.7 per cent. Shares of UCO Bank remained flat at Rs 34.40 at BSE, same as previous day’s closing price.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%