State-run Uco Bank has reported net loss of Rs 960 crore for the December quarter, marginally less than its net loss in the year ago period but higher than that of in the preceding quarter. The bank's operating profit, which is calculated before provisions and contingencies, however trebled at Rs 1211 crore against Rs 381 crore in the year agop period.
It had reported net loss of Rs 892 crore for the September 2019 quarter and Rs 999 crore for the December 2018 one, according to the bank's regulatory filing to stock exchanges.
The bank's total provisions and contingencies grew 62 per cent at Rs 2171 crore from Rs 1340 crore -- despite a 27 per cent dip in provisions to cover non performing assets (NPA) at Rs 1646 crore -- forcing it to report the straight 17th quarter loss.
Asset quality, Uco's nemesis for decades, has improved from the past year with gross NPA ratio at 19.45 per cent at the end of December compared with 27.39 per cent a year back. Net NPA ratio, which has fallen to 6.34 per cent from 12.48 per cent for the same period, has raised hopes of it coming down below the critical 6 per cent level which would help it to get out of the Prompt Corrective Action net. It was put under PCA in 2017.
The bank's profit from treasury more than halved in the December quarter at Rs 335 crore from Rs 806 crore a year back which restricted the fall in net loss.
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