UCO Bank Q2 net loss widens to Rs623 crore
Kolkata: Public sector lender UCO Bank’s net loss widened to Rs622.56 crore in the quarter to September on the back of increasing non-performing assets, or NPAs.
The lender reported a net loss of Rs384.83 crore in the year-ago period.
Interest and non-interest income combined declined 23.95% to Rs3,757.51 crore from Rs4,941.41 crore a year ago. Interest income fell to Rs3,446.22 crore from Rs4,329.45 crore, a decline of 20.4%.
Operating profit declined 78% to Rs243.79 crore from Rs1,108.02 crore. Total expenditure also decreased 8.33% to Rs3,513.72 crore in the quarter from Rs3,833.39 crore a year ago.
Provisions (other than current tax) and contingencies stood at Rs864.70 crore in the July-September quarter of 2017-18. It was Rs1,488.34 crore in the year-ago period. Provision for NPAs in the quarter increased to Rs1,323.36 crore from Rs980.03 crore in the same period last fiscal.
Revenue from treasury operations decreased 22.9% to Rs1,665.84 crore in the July-September quarter from Rs2,161.42 crore in the same period last year. Revenue from corporate banking operations also declined 30.4% to Rs1,249.85 crore, while retail banking operations stood at Rs832 crore during the quarter under review, a drop of 14.49%.
Kolkata-based Uco Bank’s gross NPAs rose to Rs24,434.95 crore from Rs22,275.51 crore a year ago. In percentage terms, gross NPAs in the second quarter of the current fiscal year rose to 19.74% of the loan book from 16.51% in the year-ago period.
Net NPAs rose to Rs11,008.23 crore, or 9.98%, from Rs10,890.43 crore, or 8.83% a year ago.