Public sector lender UCO Bank on Friday reported a 2% y-o-y rise in the net profit to R521.40 crore in the June quarter on the back of a significant drop in provisions. The bank had reported a net profit of R511.11 crore in the same period last year.
The bank's asset quality improved with gross NPA ratio falling 127 bps y-o-y to 4.31%. Total income rose 15.56% to R5,395.17 crore from R4668.81 crore a year ago, backed by a 20.59% growth in the total interest income. Net interest income rose 8.73% to reach R1,483.13 crore.
Other income fell 30.24% y-o-y to R322.23 crore due to lower income from treasury operations. Despite a fall in other income, the bank’s profitability rose due to a significant fall in total provisions on the back of a drop in NPA provisions.
UCO Bank CMD Arun Kaul said the bank’s recovery and upgradation stood at R784 crore, while fresh slippages were at R592 crore. “We are continuously focusing on recovery and upgradation,” Kaul said.
The bank sold R265-crore bad assets to the Asset Reconstruction Companies (ARCs) in the June quarter, he said. Net NPA ratio fell 82 bps y-o-y to 2.33% in the June quarter.