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Uco Bank sees 33.4% rise FY11 net profit

Uco Bank sees 33.4% rise FY11 net profit
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First Published: Mon, Jul 12 2010. 03 48 PM IST
Updated: Mon, Jul 12 2010. 03 48 PM IST
Kolkata: State-run lender, Uco Bank expects to post a net profit of Rs1,350 crore in FY11, executive director Ajai Kumar said at shareholders meeting on Monday.
“During 2009-10 our net profit stood at Rs1,012 crore, and going by the present trend, our net profit should be at around Rs1,350 crore in FY11”, he said, a jump of 33.4%.
The bank expects it’s April-June credit and deposit growth at 19%, while the net interest margin is expected to be around 2.6%, he said.
“The credit growth has been mainly driven by large and mid-corporate sector, but our thrust area, going forward, will be the retail sector.”
Referring to the follow-on-public offer (FPO) of the bank, he said that the bank is not in a hurry to hit the market as it is waiting for the fund infusion from the union government.
“We have requested for Rs1,300 crore from the government through perpetual non-cumulative preference shares (PNCPS), as Tier-I capital, for the current financial year. Of this we are expecting Rs375 crore anytime,” Kumar said.
“This fund infusion from the government would strengthen our capital structure, which in turn would fetch better value. So once this is done, only then would we go for a FPO.”
In February this year, Uco Bank got shareholders’ nod to raise funds via follow-on public offer or placement to institutional investors.
The board then decided to issue 60 million equity shares with a face value of Rs10 each at a suitable premium to raise funds, Kumar said.
Shares of Uco Bank ended up 3.23% at Rs83.20, in a Mumbai market that ended up 0.58%.
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First Published: Mon, Jul 12 2010. 03 48 PM IST