UCO Bank Q3 Net profit falls 23%

 

Public sector lender UCO Bank on January 24 reported a net profit of Rs 503.83 crore for the October-December quarter of financial year (FY) 2023-24, which marks a 22.8 percent falls as compared to Rs 652.97 crore clocked in the year-ago period.

The bank's gross non-performing asset (NPA) stood at 3.85 percent, down from 5.63 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 0.98 percent, improving from 1.66 percent on a year-on-year basis.

UCO Bank's total business grew by 10.46 percent to Rs.435456 crore on y-o-y, wherein gross advances increased by 18.63 percent to Rs. 179195 crore on y-o-y & total deposits grew by 5.38 percent on y-o-y to Rs.256261 crore.

Public sector lender net interest income (NII) for the nine months ended December 31, 2023, stood at Rs.5914 crore registering a growth of 10 percent on the y-o-y basis as against Rs.5371 crore for the nine months ended December 31, 2023. The Provision Coverage Ratio improved to 95.21 percent as on December 31, 2023. as against 93.58 percent as on December 31, 2022, registering an improvement of 163 bps on y-o-y basis and 14 bps on q-o-q basis.

UCO bank has a network of 3217 domestic branches and 2 overseas branches each at Hong Kong and Singapore Centre & 1 representative office in Iran as of December 31, 2023.

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Latest Bank merger news of PSU banks and PSU Insurance Company

 

A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.

The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.

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Government To Meet RBI, NPCI And TRAI After UCO Bank Incident: What Caused 'Rs 820 Crore Technical Glitch' At The Bank

Public sector UCO Bank on Thursday said it has been able to recover around Rs 649 crore out of Rs 820 crore, which is about 79 per cent of the amount “erroneously credited” to some customers due to a technical issue in the Immediate Payment Service (IMPS).

“The bank has initiated requisite actions to recover the balance amount of Rs 171 crore and the matter has also been reported to the law enforcement agencies for necessary action,” it said in an exchange filing.

During the period from November 10 to 13, the bank observed that due to technical issue in IMPS, certain transactions initiated by holders of other banks have resulted in credit to the account holders in UCO Bank without actual receipt of money from these banks, UCO bank said in another filing. Money is instantly transferred in the IMPS system from one account to another account.

“The bank, as a precautionary measure, has made the IMPS channel offline and is working closely with the stakeholders to resolve the issue and restore the IMPS services at the earliest,” it said.

“The bank re-iterates and assures that all other critical systems are operational and available. The bank continues to provide safe and secured services to customers,” it said.

The financial impact, if any, due to the development is yet to be ascertained and the bank will endeavour to intimate the ascertainment, the bank said.

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UCO Bank Q2 Net profit falls 20.3%

Public sector lender UCO Bank on November 3 reported a 20.3 percent fall in net profit at Rs 401.67 crore for the July-September quarter of the financial year 2023-24.

The Kolkata-headquartered bank reported a net profit of Rs Rs 504.52 crore in the year-ago period.

The bank's gross non-performing assets (GNPAs) declined to 4.14 percent from 4.48 percent of the year-ago period. Its net non-performing assets (NNPAs) fell to 1.11 percent from 1.18 percent.

Bank's total business grew by 10.56 percent to Rs.417145 crore on y-o-y, wherein Gross Advances up by 17.99 percent to Rs. 167734 crore on y-o-y & total deposits grew by 6.07 percent to Rs.249411 crore on y-o-y. UCO Bank's, Capital Adequacy Ratio (CRAR) improved to 16.83 percent as on September 30, 2023, as compared to 14.02 percent on September 2022, with Tier 1 ratio of 14.19 percent as of Sept 2023 as against 11.25 percent as on Sept 2022 registered an improvement of 281 bps and 294 bps in CRAR and Tier 1 respectively.

The bank has a network of 3213 domestic branches and 2 overseas branches in Hong Kong and Singapore & 1 Representative office in Iran. Out of the total branches, Bank has 61.78 percent i.e. 1985 branches in rural & semi-urban areas. The bank has 2472 ATMs and 8747 BC (Business Correspondents) Points making the total number of 14435 touch points as of September 30, 2023.

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UCO Bank Q1 Net profit grows 81%

 

Public sector lender UCO Bank on July 28 reported a 81 percent jump in net profit at Rs 223.48 crore in June quarter of the current financial year 2023-2024. The Kolkata-headquartered bank reported a net profit of Rs 123.61 crore in the year-ago period.

The bank's gross non-performing assets (GNPAs) declined to 4.48 percent from 7.42 percent in the June quarter of the previous fiscal. The net non-performing assets (NNPAs) fell to 1.18 percent from 2.49 percent.

Net Interest Income (NII) increased by 21.78 percent to Rs.2008.80 crore in Q1FY24 as against Rs.1649.54 crore for Q1FY23.

Net Interest Margin (NIM) improved to 2.86 percent as on 30.06.2023 as against 2.74 percent as on 30.06.2022, registering a growth of 12 bps.

Return on Assets (ROA) improved to 0.28 percent, registering an improvement of 11 bps from 30.06.2022.

Total Business grew by 16.06 percent on Y-o-Y basis to Rs. 413972 crore as on 30.06.2023 as against Rs.356677 crore as on 30.06.2022.

Total Deposits up by 10.81 percent on Y-o-Y basis to Rs. 249694 crore as on 30.06.2023 as against Rs.225328 crore as on 30.06.2022.

Capital Adequacy Ratio (CRAR) improved to 16.85 percent as on 30.06.2023 as compared to 14.13 percent on 30.06.2022, with Tier 1 ratio of 14.16 percent as on 30.06.2023 as against 11.29 percent as on 30.06.2022, registered an improvement of 272 bps and 287 bps in CRAR and Tier 1 respectively.

Bank said that network of 3209 domestic branches and 2 overseas branches each at Hongkong and Singapore Centre.

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Uco bank posted highest ever annual profit

Public sector UCO Bank on Tuesday reported an 86.2 per cent rise in net profit to Rs 581.24 crore for the March 2023 quarter on the back of a reduction in bad loans. The bank reported a profit of Rs 312.18 crore in the January-March quarter of 2021-22.

UCO Bank has posted its highest-ever annual net profit of Rs 1,862.34 crore in 2022-23 against Rs 929.76 crore in the preceding fiscal, registering a nearly 100 per cent year-on-year growth, the Kolkata headquartered lender said in a stock exchange filing.

The net interest income (NII) at Rs 7,343.13 crore during the year too was the bank's highest ever.

The bank's gross non-performing assets (NPA) in the fourth quarter declined to 4.78 per cent from 7.89 per cent a year ago.

Similarly, the net NPA too declined to 1.29 per cent in the January-March 2022-23 quarter from 2.7 per cent.

UCO Bank's capital adequacy ratio at 16.51 per cent at March-end 2023 increased by 277 basis points from 13.74 per cent a year ago

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UCO Bank Q1 Results: Profit rises 11% YoY

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.

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UCO Bank Q4 results: Net profit jumps three-fold to Rs 312 cr

 

State-owned UCO Bank on Friday posted an over three-fold jump in net profit at Rs 312.18 crore for the quarter ended March 2022 as a fall in bad loans lowered the provisioning requirement.

The lender had posted a net profit of Rs 80 crore in the corresponding quarter a year ago.

Total income during the fourth quarter of 2021-22 was, however, down at Rs 4,362 crore, as against Rs 4,637 crore in the year-ago period, UCO Bank said in a regulatory filing.

For the full fiscal FY22, the bank's net profit grew more than five times to Rs 930 crore from Rs 167 crore in FY21.

Total income during the year was at Rs 18,082 crore, up from Rs 17,870 crore in the preceding fiscal.

The lender brought down its bad assets portion significantly as the gross non-performing assets (NPAs) came in at 7.89 per cent by end of March 2022, as against 9.59 per cent by end of March 2021.

Value-wise, the gross NPAs fell to Rs 10,237 crore from Rs 11,352 crore.

Similarly, the net NPAs were down at 2.70 per cent (Rs 3,316 crore) from 3.94 per cent (Rs 4,390 crore).

Thus, the provisioning for tax and other contingencies also fell to Rs 466 crore in Q4 FY22 from Rs 982 crore earlier.

Besides, the Kolkata-headquartered lender said it is holding Rs 4,707.36 crore provisions (including technical write-offs) -- 100 per cent of the requirement for accounts covered under the Insolvency and Bankruptcy Code (IBC).

On prudential framework of resolution of stressed assets, the bank holds additional provision of Rs 702.32 crore in nine accounts, it added.

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