UCO Bank for Re payment deal with Sudan, Syria for oil imports

UCO Bank is keen to extend the rupee payment arrangement, which it already has with Iran, for oil imports from Sudan and Syria, the state-owned bank's Chairman and Managing Director Arun Kaul said today.
"Syria and Sudan, both the countries are affected by sanctions by the US and UN. Both countries have some oil exports. We have asked the government that if India wants to import oil from these countries, we can have similar arrangement with them as well, as we have with Iran," Kaul said on the sidelines of International Management Institute (IMI) event.
He said the bank is also capable of handling those assignments if government gives the permission.

"If government wants to import, then we can have similar rupee payment arrangement. We are keen to expand, if the trade is rapidly growing," he added.
The bank has rupee payment arrangement with Iran for crude oil imports, which was one of the reasons for three-fold increase in its net profit for third quarter ended December.
Bank's standalone net profit in the October-December quarter of 2013-14 rose to Rs 314.53 crore, up from Rs 102.47 crore during the same quarter a year ago.

The bank has opened about 240 branches in the current fiscal, ending March 31, and a similar number of new branches are planned for the next fiscal.

It is also looking at the possibility of opening a branch in Iran.
"Right now, we have two branches in Singapore and two in Hongkong. We are examining the feasibility of opening a branch in Iran. We would like to strengthen domestically more, strength the bank balance sheet and then look at the overseas feasibility," he said.
UCO Bank is holding AGM meeting tomorrow. It is expected, among other things, to approve the Rs 200 crore capital infusion from the government.
Kaul said the bank will maintain a net interest margin (NIM) -- the difference of interest earned and interest expended, relative to assets -- at above 3 per cent for the current fiscal.

"We have today domestic NIM at 3.06 per cent for the quarter ended December 2013. In the previous quarter, it was at 3.10 per cent. Going forward (for the quarter ending March 2014), we are sure to maintain it above 3 per cent," Kaul said.