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UCO Bank sees April-June net profit up 15-20%

UCO Bank sees April-June net profit up 15-20%
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First Published: Mon, Jun 29 2009. 03 30 PM IST
Updated: Mon, Jun 29 2009. 03 30 PM IST
Kolkata: State-run UCO Bank expects its April-June net profit to rise 15-20% from a year ago, a top official said on Monday.
“Our profit for the quarter will be driven by treasury income, non-interest income and recovery of bad debts,” S.K. Goel, chairman and managing director, told reporters after a banking conference.
The bank’s loans and deposits in the June quarter were expected to grow by around 17-18%, Goel added. Most companies in India follow a April-March financial year.
“Typically, first quarter is always slow on credit growth, but we are experiencing a recovery of demand in certain sectors like infrastructure, auto, steel and cement,” he said.
The bank also expects its treasury income for the current quarter at Rs105 crore, up from Rs65 crore a year ago, he said.
Goel said the net interest margin of the Kolkata-based bank continues to be under pressure as its deposit rates were not lowered commensurate with lending rate cuts.
In the January-March quarter its net interest margins was 1.75% and it expects net interest margin for the June quarter at 1.95%, he said.
“Deposit rates have to come down to maintain the NIM going forward,” Goel said, adding that the bank is planning to cut the deposit rates by 50-100 basis points from July.
At 3.24 p.m., shares in the bank were up 2.51% at Rs40.85 in the Bombay Stock Exchange, that was down 0.02%.
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First Published: Mon, Jun 29 2009. 03 30 PM IST