UCO Bank logs net profit at ₹35 crore in December quarter

Interest income was down by 4.5% at ₹3,602.59 crore, however, other income moved up by 16.3% to ₹864.38 crore.

State-owned UCO Bank on January 25 reported a net profit of ₹35.44 crore in the third quarter ended December of the current fiscal year due to substantial fall in bad loans leading to lowering in provisioning requirements.

The Kolkata-headquartered lender had posted a net loss of ₹960.17 crore in the same quarter of the previous fiscal year. Sequentially, there was a net profit of ₹30.12 crore in the second quarter ended September 2020 of this fiscal.

Total income fell to ₹4,466.97 crore in the October-December period of 2020-21 from ₹4,514.21 crore in the same period of 2019-20, UCO Bank said in a regulatory filing.

Interest income was down by 4.5% at ₹3,602.59 crore, however, other income moved up by 16.3% to ₹864.38 crore.

Bank’s asset quality witnessed substantial improvement as the gross non-performing assets (NPAs) fell to 9.80% of the gross advances by end of December 2020 from 19.45% a year ago.

Value-wise, it fell to ₹11,440.47 crore from ₹22,139.65 crore.

The net NPAs too came down to 2.97% (₹3,228.08 crore) from 6.34% (₹6,199.65 crore).

Thus, provisioning for bad loans and contingencies came down to ₹1,298.96 crore during Q3FY21 from ₹2,170.69 crore in the year-ago quarter.

With regard to bank’s exposure to Delhi Airport Metro Express Pvt. Ltd. (DAMEPL), UCO Bank said it has kept the account as standard as per Supreme Court order and RBI guidelines.

The bank said it has not treated ₹194.14 crore against DAMEPL as NPA and has made provision of ₹77.54 crore.

The bank has made full provision of divergence in its assets classification and provisioning assessed by RBI in risk assessment report (RAR) for the financial year 2019-20, it said further.

The divergence in gross NPAs for FY20 stood at ₹25 crore and that in net NPAs of ₹10 crore, while the divergence in provisioning came in at ₹15 crore. Divergence in other provision was of ₹610 crore.

Thus, the adjusted notional net loss for the fiscal ended March 2020, after taking into account the divergence in provisioning, rose to ₹3,061.83 crore against the reported net loss of ₹2,436.83 crore, as per the filing.

The NPA provisioning coverage ratio is 91.22% as on December 31, 2020, the bank said.

Stock of UCO Bank traded at ₹13.25 apiece, up by 2.87% from previous close on the BSE.

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