Public sector UCO Bank posts Q1 net profit of Rs 26 crore

State-run UCO Bank on Friday posted a net profit of Rs 21.46 crore in the first quarter ended June 2020 on lower bad loan provisions.

The bank had registered a net loss of Rs 601.45 crore in the same quarter of the previous fiscal year. Quarter-on-quarter basis, UCO Bank had logged a profit of Rs 16.78 crore in the March quarter this year.

Its total income in April-June 2020 fell slightly to Rs 4,436.57 crore from Rs 4,446.61 crore in the same period of 2019, the bank said in a regulatory filing.

Interest income fell to Rs 3,662.64 crore during the quarter from Rs 3,816.53 crore a year ago.

Its provisions for bad loans and contingencies for the period came down to Rs 1,180.37 crore as against Rs 1,802.89 crore a year ago. Of this, the provisions for bad loans stood at Rs 564.78 crore, lower than Rs 1,374.97 crore a year ago.

The Kolkata-headquartered lender showed a consistent improvement in its asset quality by bringing down the gross non-performing assets (NPAs) to 14.38 per cent of the gross advances as on June 30, 2020, from 24.85 per cent in June 2019 and 16.77 per cent at the end of March 2020.

In value terms, the NPAs decreased to Rs 16,576.43 crore by the end of June 2020 from Rs 29,431.60 crore a year ago.

Net NPAs also fell to 4.95 per cent (Rs 5,138.18 crore) by the end of Q1FY21 from 8.98 per cent (Rs 8,781.97 crore) a year ago. It was at 5.45 per cent by the end of the fiscal ended March 2020.

UCO Bank said it has kept Delhi Airport Metro Express Pvt Ltd (DAMEPL) as standard account in terms of Supreme Court order and necessary guidelines issued by the RBI.

Amount not treated as NPA as per IRAC norms is Rs 194.14 crore and the provisions required to be made is of Rs 77.54 crore, the bank said.

Besides, it said that under the provisions of Insolvency and Bankruptcy Code (IBC), there was total outstanding of Rs 913.46 crore in respect of select borrower accounts and the bank is holding a provision of Rs 813.94 crore.

"During the quarter, bank has reported two loan accounts under borrowal fraud category to RBI and amount outstanding was Rs 581.59 crore as on June 30, 2020. The accounts were already under NPA category and provision amounting to Rs 357.37 crore is held in the account has made an additional provision of Rs 74.74 crore as on June 30, 2020," it added.

The non-performing loan provisioning coverage ratio is 86.50 per cent as on June 30, 2020, it said.

Stock of UCO Bank closed 0.78 per cent down at Rs 14.07 apiece on the BSE.

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