UCO Bank posts pre-tax loss of Rs 892 crore in September quarter

The UCO Bank's total income during the September 2019 quarter increased to Rs 4,533.51 crore

High provisioning continued to weigh upon Kolkata-based UCO Bank, although losses reduced over the last one year. The bank posted a loss before tax of Rs 892 crore for the second quarter of the present financial year, against a loss before tax of Rs 1136 crore in the same period of the last financial year. In the first quarter of this fiscal, the bank had posted a loss before tax of about Rs 601 crore.

The provisioning for bad loans and contingencies increased to Rs 2,099.02 crore for the quarter under review from Rs 1,642.54 crore a year ago

On a quarter-on-quarter basis, as well as on a sequential basis, the asset quality of the bank improved. In the second quarter, the bank’s gross non-performing asset as a percentage of total loans stood at 21.87 per cent, while in the same period last financial year, it was 25.37 per cent. In the first quarter of this fiscal, the percentage of gross NPA was 24.85 per cent. The net NPA came down from 11.97 per cent in Q2 of FY19 to about 7.32 per cent in Q2 of FY20.

The bank's total income during the September 2019 quarter increased to Rs 4,533.51 crore, compared with Rs 3,749.18 crore a year ago.

During the July-September 2019 period, the central government infused Rs 2,130 crore by way of preferential allotment of equity share in the bank.

 The bank’s non-performing loan provisioning coverage ratio is 81.19 per cent as on September 30, 2019.

Also, the bank said it is currently in the process of evaluating the option under new tax rules as amended by the government and continues to recognise the taxes on income for the quarter and the half year ended September as per earlier provisions of the Income Tax Act, 1961, the bank said.