UCO Bank logs net profit at Rs 35 cr in Q3, stock closes 1.55% higher

UCO Bank logs net profit at Rs 35 cr in Q3, stock closes 1.55% higher

Public sector lender posted a net profit of Rs 35.44 crore in the third quarter ended December 2020 (Q3FY21) as against net loss of Rs 960.17 crore in the quarter ended December 2019 (Q3­FY20). Its net interest income (NII) in the reporting quarter was up 13.8 per cent at Rs 1,407.15 crore from Rs 1,236.59 crore in Q3FY20. Its stock closed 1.55 per cent higher at Rs 13.08 per share on BSE.

The Kolkata-based lender which is under Reserve Bank of India’s Prompt Corrective Action (PCA) regime due high incidence of bad loans and weak profitability reported improvement in asset quality ross profile.

Its gross non-performing Assets declined to 9.8 per cent in December 2020 from 19.45 per cent a year ago.

The net NPAs also declined to 2.97 per cent in December 2020 from 6.34 per cent a year ago. However, bank did not disclose NPAs on pro-forma basis assuming that Supreme Court granting interim stay on treating loans overdue for 90 days as NPA.

The Provision Coverage Ratio (PCR) increased to 91.22 per cent at end of December 2020 from 83.71 per cent a year ago.

Its advances rose by 2.63 per cent to Rs 1.16,797 crore in December 2020. The total deposits were up by 7.42 per cent at Rs 2,02,421 crore.

It capital adequacy ratio stood at 12.08 per cent with Common Equity Tier 1 of 9.01 per cent. Bank has a taken approval from broad to raise Rs 3,000 crore of capital (equity and debt).

It expects to raise Rs 1,000 crore of equity capital through Qualified Institutional Placement (QIP), said its managing director and chief executive A K Goel said.

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