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UCO Bank net profit rises 27% to ₹786 crore in July-September quarter
Sentiment: NeutralHigh Priority
What Happened?
UCO Bank reported a 27% increase in net profit to ₹786 crore for the second quarter ending September 30, up from ₹620 crore a year earlier. Total income also rose to ₹8,170 crore.
Key points
- Interest income increased to ₹7,286 crore from ₹6,537 crore year-on-year.
- Operating profit rose to ₹1,872 crore compared to ₹1,613 crore last year.
- Gross non-performing assets (NPAs) decreased to 1.96% from 2.56% a year ago.
- Net NPAs fell to 0.18% from 0.43% in the previous year.
- Provisioning for bad loans rose to ₹444 crore from ₹405 crore last year.
- Provision Coverage Ratio (PCR) improved to 98.36% from 96.99% year-on-year.
- Capital to Risk-Weighted Assets Ratio (CRAR) increased to 18.85% from 17.89%.
Key insights
- The reduction in NPAs could indicate improved asset quality, which may attract more customers.
- Higher operating profit suggests effective cost management and operational efficiency.
- The increase in provisioning may reflect a cautious approach to potential future loan defaults.
Why it matters
The bank's improved financial performance may enhance investor confidence and support future growth.
Entities
UCO Bank· OrganizationKolkata· City
Source
Business Standard
