State-owned Uco Bank managed to report an 11% rise in June quarter net profit at Rs 224 crore against Rs 102 crore in the year ago period on account of sharp fall in provisions while its total income slipped due to treasury losses.
The bank booked a market to market loss of Rs 653 crore leading to negative other income of Rs 55 crore against Rs 857 crore in the year ago period.
In line with this, the operating profit fell 62.5% at Rs 440 crore for the quarter under review against Rs 1173 crore in the corresponding quarter in FY22.
However, a 76% dip in total provisions including those to cover bad loans at Rs 247 crore against Rs 1014 crore helped the lender show a rise in net profit.
Bank managing director Soma Sankara Prasad said the management does not expect more provisioning requirements in the September quarter against treasury operations as bond yields are likely to stay at the current levels or may come down with the Reserve Bank of India frontloading repo rate cuts.
Uco's net interest margin remained at a healthy 3.25% for the quarter.Its asset quality improved with gross non-performing assets ratio standing at 7.42% at the end of June as compared with 7.89% three months prior to that. Net NPA ratio stood at 2.49% against 2.7%.
The bank's capital adequacy ratio remained stable at 4.13%."We are not required to raise capital till March," Prasad said.
No comments:
Post a Comment