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UCO Bank’s Q2 income soars 13% to Rs 5,257 cr

UCO Bank’s Q2 income soars  13% to Rs 5,257 cr
State-run UCO Bank has reported a 74 per cent plunge in net profit to Rs 103 crore for the second quarter of the current fiscal due to higher provisioning for bad loans. The bank’s profit in the comparable period of the previous fiscal stood at Rs 400.2 crore.

UCO Bank Chairman and Managing Director Arun Kaul attributed the steep fall in profit to higher provisioning. Total income in the quarter under review increased 12.97 per cent to Rs 5,257 crore while total interest income showed a growth of 10.21 per cent to Rs 4,898 crore, he told reporters here.

As on September 30, 2014, the gross non-performing assets (NPA) ratio of the bank stood at 5.20 per cent (5.32 per cent) of total advances while net non-performing assets stood at 3.15 per cent (3.13 per cent). Kaul said that slippages in assets belonging to the infrastructure sector were the main reason for fresh non-performing assets of Rs 2,100 crore during the quarter.

He added that domestic credit offtake was low as AAA rated corporates and Central public sector undertakings (CPSUs) were sourcing cheap funds from outside sources and not coming to the bank. UCO bank, Kaul informed, is expecting good recovery from old NPAs during the current quarter.

The net interest margin (NIM) of the bank during the quarter stood at 2.60 per cent (3.10 per cent) while the total business of the bank at the end of second quarter stood at Rs 3,46,716 crore.
PTI

PTI

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