UCO net up 3-fold

Government-owned UCO Bank has recorded over three fold increase in net profit at Rs 380 crore for the quarter ended 31 March 2010, compared to Rs 103 crore in the same period last year. The rise in profit, almost 269 per cent, was on account of aggressive shedding of high cost deposits and rise in yield on advances, said S K Goel, chairman and managing director, UCO Bank.

However, the bank’s treasury income dropped 70 per cent to Rs 27 crore, against Rs 90 crore in the same period last year. The non-interest income of the bank fell to Rs 254 crore in the last quarter, against Rs 356 crore in the same period last year, a fall of about 28 per cent. The net interest income of the bank increased by about 98 per cent to Rs 744 crore in the last quarter, against Rs 375 crore in the corresponding quarter. The net interest margin (NIM) of the bank in the Q4 of the last financial year was about 2.38 per cent, against 1.85 per cent in the same period last year. The provisions in the quarter ended March 2010, went down to Rs 182 crore, against Rs 224 crore in the same period last year, a fall of 42 per cent. The gross non performing assets (NPA) of the bank stood at 1.99 per cent in the last quarter, against 2.21 per cent in the same period last year. The net NPA of the bank stood at 1.17 per cent, against 1.18 per cent last year corresponding quarter. Over the last year, total depositsof the bank grew by 22.15 per cent, whereas the advances grew by 19.67 per cent.

The bank was hoping to come out with the follow-on public offer by May-end, said Goel. Also, it has sought a capital of Rs 1,500 crore from the government in the present financial year. This apart, it is expecting Rs 300 crore soon as a part of the previously approved capital infusion plan of Rs 1,200 crore. The capital adequacy ratio of the bank stood at 13.21 per cent in the last quarter, against 11.93 per cent in the same period last year.