Calcutta Trio: The Sick And The Convalescing

Uco Bank showed no signs of turnaround, United Bank of India struggled, even as Allahabad Bank made a remarkable recovery in 1995-96. None of the three Calcutta-based banks, however, appeared to be on the brink of an Indian Bank-like disaster.

Allahabad Bank's turnaround was somewhat marred by its involvement in Fera violations. In fact, in a year marked by investigations and Fera-scam related losses, its performance seems a paradox.

Allahabad Bank

Allahabad Bank made a remarkable turnround by posting a net profit of Rs 5.62 crore for the year ended March 31, 1996, compared to a net loss of Rs 76.36 crore in the previous financial year.

The bank's operating profit more than trebled to Rs 103.21 crore during the year against Rs 32.03 crore a year earlier.

The bank attributes its improved performance to the following factors:

* Additional income generated from non-fund and non-interest income,

* Full recovery of interest on advances,

* Reduction in non-performing assets,

* Increase in low cost funds, and

* Reduction in outstanding balances in unreal assets.

Though the loss to the bank in the FCNR scam early this year was about Rs 35 crore, the bank claims to have fully provided for this loss and is hopeful of recovering a substantial portion of the money.

During the year the paidup capital of the bank increased to Rs 778.7 crore due to a capital infusion of Rs 160 crore by the government. Deposits which stood at Rs 9,231.01 crore during the previous financial year increased to Rs 10,148.92 crore while advances were Rs 4,815.6 crore, up Rs.578.65 crore over the previous year.

United Bank of India

United Bank of India (UBI), on the other hand has cut its operating losses to Rs 50 crore from Rs 83 crore during the last financial year. Net loss has however risen to Rs 234 crore, up Rs 37 crore over the previous year. UBI said the reduction in its operating losses would have been more but for the impact of payment of salary arrears to officers amounting to Rs 30 crore.

The net loss increased on account of additional provisioning requirements, the bank said.

The paidup capital of the bank increased by Rs 256 crore during the year to Rs 1,373 crore.

Deposits stood at Rs 8,790 crore, up Rs 748 crore over the previous year. Advances were Rs 2,851 crore, an increase of only Rs 37 crore over the previous year while total investments increased by Rs 578 crore to Rs 4,456 crore.

During the 1995-96 fiscal, UBI recovered Rs 130 crore of non-performing assets.

Uco Bank

The other Calcutta-based bank, Uco Bank, has recorded an operating loss of Rs 26.13 crore against an operating profit of Rs 36.63 crore during the previous accounting year. Net loss has shot up to Rs 236.66 crore, a jump of Rs 152.85 crore over last year's net loss of Rs 83.81 crore.

Deposits on the other hand showed a marked increase at Rs 11,443.17 crore an increase of Rs 1,114.83 crore over last year. Advances however increased by only Rs 105.98 crore during the year and stood at Rs 4,982.13 crore as on March 31, 1996. Investments stood at Rs 5,452.81 crore at the end of the year, up Rs 785.81 crore over the last year.