Uco Posts Rs 66 Crore Q1 Operating Profit

UCO Bank has registered a 34 per cent growth in operating profit at Rs 66 crore in the first quarter of the current fiscal, against Rs 49.80 crore achieved in the corresponding previous period.

The growth in operating profit was achieved in spite of a Rs 30 crore outgo against its amortised voluntary retirement scheme (VRS) concluded last fiscal. During the period the bank registered an overall business growth of Rs 1,000 crore.

Considered one of the weak banks, UCO has over the years recorded a negative growth in the first quarter of every fiscal.

This is for the first time that the bank has ever managed a positive growth in operating profit in its first quarter.

The bank also registered a Rs 200 crore growth in savings bank deposit, which was reflected in its bottomline for the period.

On the operational front, a chunk of the operating profit was on account of profits booked from its investment portfolio.

Officials from the bank say that it would require higher profit than that estimated to keep its capital adequacy level at nine per cent after meeting all requirement of provisions this fiscal.

Employee productivity at the bank is one of the lowest at less than Rs 1 crore per employee and has introduced measures to enhance it.

Meanwhile, the bank management has also agreed to pay all its arrears due to employees by September 2001.

UCO will require to cough up Rs 7.03 crore as arrears for the period between November 1997 to March 1998, and another Rs 13.56 crore as arrears for 2000-01.

Amount outstanding to employees for 1998-99 at Rs 44.45 crore will be released by April 2002 and dues at Rs 44.2 crore for the period 1999-2000 will be cleared before October 2002.

The unions at the bank have, however, opposed the payment in installment and has demanded one-time payment of dues.