UCO Bank sees near 4-fold rise in Q2 net

State-owned UCO Bank’s net profit in the second quarter jumped almost four-fold to Rs 400.20 crore from Rs 103.71 crore in corresponding year-ago period. Arun Kaul, Chairman and Managing Director of the bank, said the growth trends in all parameters, including interest income and net interest margin, were likely to be maintained in the second half of this fiscal, too.

Apart from credit growth, the bank saw reduction in costs as well as upward trend in recoveries in the second quarter ended September 30. “During the quarter, NPAs worth Rs 778 crore were reduced,” Kaul told media persons here on Friday.

Also, much of the bank’s corporate debt restructuring proposals have been approved. “There are a few left in the pipeline,” he added.

Capital infusion

The bank expects the Government to infuse Rs 200 crore equity capital in it during the January-March quarter.

Kaul said the infusion, among the smallest for public sector banks, will help meet the capital adequacy norms.

In 2012-13, the bank had received Rs 681 crore from the Government by way of equity infusion. The total capital of the bank as on March 31, 2013 stood at Rs 2,575.63 crore. The reserves and surplus stood at Rs 7,106.78 crore at the end of FY13.

The UCO Bank stock of face value Rs 10 closed at Rs 74.75, up 5.28 per cent, on the BSE on Friday.

jayanta.mallick@thehindu.co.in

Source: thehindubusinessline