UCO Bank Q2 net loss widens to Rs 11.3 bn as bad loans soar; stock falls 4%

UCO Bank registered a net loss of Rs11.36 billion in the second quarter (Q2), on account of rising bad loans. The bank had registered a net loss of Rs6.22 billion in the year-ago period and Rs6.33 billion in the first quarter this fiscal year. 

The net provisions nearly doubled in the last quarter on a year-on-year basis, as total provisions stood at Rs16.42 billion in the last quarter, against Rs8.64 billion in the same period last financial year. Provisions for NPA stood at Rs14.10 billion in the last quarter, against Rs13.23 billion in the same period of the last fiscal year. 

Gross NPA as a percentage of total advances of the bank touched 25.37 per cent at the end of the last quarter, against 19.74 per cent in the same period of the last financial year. Net NPA stood at 11.97 per cent at the end of Q2 of FY19, against 9.98 per cent in Q2 FY18. In actual terms, gross NPA of the bank stood at Rs295.81 billion in the last quarter, against Rs244.34 billion in the same period of the last fiscal year. 

The stock of the bank closed 4.27 per cent down at Rs20.20 on the BSE on Monday.