UCO Bank March quarter net profit jumps about five-folds to Rs 80 crore
For the full-year 2020-21, UCO Bank reported a net profit of Rs 167.04 crore. There was a net loss of Rs 2,436.83 crore in FY2019-20
New Delhi: State-run UCO Bank on Thursday reported about five-fold jump in its net profit at Rs 80 crore in the last quarter of the fiscal ended March 2021.
The Kolkata-headquartered lender had posted a net profit of Rs 16.78 crore in the corresponding a year ago. For the full-year 2020-21, the bank reported a net profit of Rs 167.04 crore. There was a net loss of Rs 2,436.83 crore in FY2019-20.
Total income in Q4 FY21 increased to Rs 4,936.75 crore, up by 9.4% from Rs 4,511.21 crore in the same quarter of FY20, the bank said in a regulatory filing.
Total income for full year of FY21 also rose to Rs 18,166.42 crore from Rs 18,005.55 crore in the previous fiscal. Even as the interest income of the lender was down to Rs 14,446.15 crore from Rs 15,134.34 crore for the full year, the other income increased to Rs 3,720.27 crore as against Rs 2,871.21 crore.
Bank’s bad assets showed significant improvement with the gross non-performing assets (NPAs) falling to 9.59% of the gross advances at the end of FY21 as against 16.77% by end of FY20. In absolute terms, gross NPAs fell to Rs 11,351.97 crore from Rs 19,281.95 crore.
Net NPAs or bad loans also came down to 3.94% (Rs 4,389.50 crore) from 5.45% (Rs 5,510.65 crore). Provisions for bad loans and contingencies during the quarter under review was raised to Rs 1,783.15 crore from Rs 1,193.25 crore in the year-ago period.
With regard to the Supreme Court order and RBI guidelines in the matter of Delhi Airport Express Pvt Ltd (DAMEL), UCO Bank said it has kept the account as standard.
The bank has not treated an amount of Rs 194.14 crore as NPA as per norms, said the lender. Provisions of Rs 77.54 crore has been held, as required, for DAMEPL account, it said.
Among others, UCO Bank said there was a divergence of Rs 25 crore in gross NPAs — which is the difference of gross NPAs reported by the bank and that assessed by the RBI for fiscal 2019-20.
Likewise, the divergence in net NPAs stood at Rs 10 crore and the divergence in provisioning was Rs 15 crore.
With this divergence, bank’s net losses for FY20 adjusted to be Rs 3,061.83 crore as against Rs 2,436.83 crore reported by the bank, it said. Stock of UCO Bank closed 1.39% up at Rs 13.15 apiece on the BSE.