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UCO Bank Q3 net loss narrows marginally

UCO Bank Q3 net loss narrows marginally

New Delhi: Public sector UCO Bank on Thursday said it has marginally narrowed its net loss to Rs 960.17 crore for the third quarter ended December, impacted by elevated levels of bad loans and provisioning.

The Kolkata-based bank had reported a net loss of Rs 998.74 crore during the corresponding October-December period of the previous fiscal year.

Total income during the third quarter of 2019-20, however, rose to Rs 4,514.21 crore as against Rs 3,585.56 crore earlier, UCO Bank said in a regulatory filing. The bank's bad loans ratio remained fairly high, though significantly lower than last year, at 19.45 per cent of the gross loans at the end of December 2019, from 27.39 per cent in the year ago period. Net NPAs halved to to 6.34 per cent from 12.48 per cent. In value terms, the gross NPAs stood at Rs 22,139.65 crore, down from Rs 31,121.79 crore at December-end, 2018. Net NPAs reduced to Rs 6,199.65 crore from Rs 11,755.61 crore.

Provisions for bad loans were trimmed to Rs 1,645.51 crore for the quarter under review, from Rs 2,243.85 crore a year ago.

However, the overall provisions and contingencies were higher for the quarter at Rs 2,170.69 crore, compared to Rs 1,399.56 crore.

The non-performing loans provisioning coverage ratio stood at 83.71 per cent as on December 31, 2019, UCO Bank said.

On divergence of bad loans during 2018-19, the lender said the net loss was adjusted to Rs 5,225.53 crore from the earlier reported Rs 4,321.09 crore.

The gross NPAs as on March 31, 2019 as reported by the bank was Rs 29,888.33 crore, while the RBI assessed it at Rs 31,105.75 crore, leading to a divergence of Rs 1,217.42 crore.

Net NPA divergence was of Rs 165.05 crore and the divergence on provisioning stood at Rs 1,390.17 crore.

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