UCO Bank profit slumps 80% to Rs 50 cr in Q4

Higher provisioning, driven by a stress in asset quality, dragged down UCO Bank net profit in the fourth quarter by nearly 80 per cent. Net profit for the quarter ended March 31, 2013, stood at Rs 50 crore.

Provisioning increased by 114 per cent to Rs 977 crore (Rs 456 crore).

The bank’s board has recommended a dividend of Re 1 per share of face value of Rs 10 each.

On a sequential basis, profits declined by 51 per cent from Rs 102 crore during the quarter ended December 31, 2012.

Gross non-performing assets as a percentage to advances increased to 5.42 per cent (3.48 per cent), net NPAs increased to 3.17 per cent (1.96 per cent).

According to S. Chandrasekharan, Executive Director of UCO Bank, the drop in profits is primarily on account of a rise in provisioning. “On a quarter-on-quarter basis, our NPAs have been coming down. Moving forward the asset quality should improve,” he told Business Line.

Capital adequacy ratio improved to 14.22 per cent (12.35 percent). The bank has no immediate plans to raise capital, he said.

Shares of UCO Bank closed at 73.45, up by 0.27 per cent on the BSE on Tuesday.

shobha.roy@thehindu.co.in

Source: thehindubusinessline