Uco Bank targets 81% profit growth

Despite the slowdown and higher provisioning needs, Uco Bank is targeting 81 per cent growth in bottomline this year to Rs 750 crore, compared to Rs 412.6 crore during 2007-08.

The bank is focusing on recovering non-performing assets to maintain its profit margins in the first quarter, said SK Goel, Chairman and Managing Director, Uco Bank.

“The first quarter has been tough on account of the prevailing economic and political conditions. With the interest rate rising, the credit growth has been slower. But we have been stressing on the recovery of bad debts to counter any hit on the bottomline,” said Goel.

The bank recovered Rs 180 core during the the first three months of the year.

At a Ficci event, he said, the bank has provided Rs 150 crore for mark-to-market losses in the first quarter.

“There would be some impact on profits on account of provisioning. But our recovery has been very good during the quarter. Of the total recovered amount, Rs 20 crore came from the written-off accounts which would directly go to the profit book,” he said.