UCO Bank sees FY05 profit at Rs 550 crore

UCO Bank, which is hovering around Rs 21 on the bourses, hopes to register a Rs 550 crore net profit in financial year 2004-05, according to its annual report for fiscal year 2003-04.

The bank's auditors have said in the report that it had failed to quantify the impact of the 90-day norm which was recently introduced.

The auditors have mentioned that advances, investments for which interest, installment on principal were outstanding for more than 90 days, have been treated as non-performing with effect from March 2004 against outstanding for more than 180 days considered in the previous year.

The consequential impact of this change has not been ascertained.

As part of its future plans, UCO Bank has decided to participate in exchange operations for India's border trade with China through its branches situated in Sikkim.

The bank has also decided to expand its overseas operations through establishing representative offices in Malaysia. It is also in the process of entering into a memorandum of understanding with the UAE Exchange of Dubai for express money agency arrangements.

It has also mentioned in its annual report that the bank, during the current fiscal, shall be targeting higher volume of business through the adoption of newer strategies for achieving higher growth rates, particularly through changes effected in organisational structure, higher level of computerisation and adoption of better risk management practices.

The bank has also firmed up plans to upgrade the skills of its specialised manpower to make them capable of handling greater volume of business.

"It will be the endeavour of the bank to remain in constant look out for newer areas of business to strengthen its income base with the improvement in net interest margin and more of non-operating expenses through non-interest income within three years," the report said.

The bank has firmed up plans to recruit as many as 500 specialised manpower in the next couple of years.