Last Modified: Fri, Feb 09 2018. 09 36 PM IST

UCO Bank Q3 net loss widens to Rs1,016 crore as bad loans spike

UCO Bank’s total income also fell to Rs3,721.93 crore from Rs4,864.21 crore in the same period a year ago

Stock of UCO Bank closed 0.68% down at Rs29.30 apiece on BSE on Friday. Photo: Indranil Bhoumik/Mint
PTI

New Delhi: Public sector UCO Bank widened its net loss to Rs1,016.43 crore in the quarter ended December 2017 as gross bad loans ratio hit over 20%, resulting into nearly doubling the amount for provisioning requirement.

The bank had reported a net loss of Rs437.09 crore in the corresponding period of the previous fiscal. The losses were also higher compared sequentially against Rs622.56 crore in the second quarter ended September of this fiscal. Total income of the bank also fell to Rs3,721.93 crore from Rs4,864.21 crore in the same period a year ago, the bank said in a regulatory filing.

Bank’s asset quality deteriorated with gross non- performing assets (NPAs) hitting 20.64% of the gross advances by end-December 2017 against 17.18% by end-December 2016. Net NPAs too spiked to 10.90% from 8.99%.

In absolute value, gross NPAs were Rs25,382.40 crore as on 31 December 2017, against Rs22,181.26 crore in the same period of the last fiscal. Net NPAs reached Rs11,923.45 crore as against Rs10,544.98 crore.

Thus, the provisioning for bad loans were to be raised to Rs1,682.40 crore for October-December period of 2017-18, from Rs914.32 crore in the same period of 2016-17. UCO Bank said it has to make an additional provision of Rs486.76 crore by March 2018 under the provisioning norms under Insolvency and Bankruptcy Code, of which, it has provided Rs349.10 crore by 31 December 2017.

The return on assets plunged to (-) 1.75% for the quarter, from (-) 0.77% in third quarter of 2016-17. The bank also informed that its board has considered the proposal to issue preference shares to government against the proposed Rs5,132 crore capital infusion.

Stock of UCO Bank closed 0.68% down at Rs29.30 apiece on BSE on Friday.

Topics: UCO BankUCO Bank resultsUCO Bank Q3 Results FY18UCO Bank lossUCO Bank NPA

First Published: Fri, Feb 09 2018. 09 36 PM IST

Latest News »