UCO Bank’s Q1 net profit rises over 80% to `223.48 crore

New Delhi: State owned lender UCO Bank on Friday reported the financial results for June quarter of current fiscal.

The bank’s net profit jumped 80.80 per cent to Rs 223.48 crore in Q1FY24 against Rs 123.61 crore in Q1FY23.

Operating Profit has shown a growth of 173.30 per cent year-on-year to Rs 1,202.35 crore for Q1FY24 as against Rs 439.94 crore for Q1FY23.

The bank’s net interest income (NII) grew by 21.78 per cent year-on-year basis to Rs 2,008.80 crore in Q1FY24 against Rs 1,649.54 crore for Q1FY23. The total income of the bank improved by 54.27 per cent from Rs 3,796.59 crore in Q1FY23 to Rs 5,856.95 crore for Q1FY24.

The Return on Assets (ROA) improved to 0.28 per cent for Q1FY24 as against 0.17 per cent for Q1FY23. Return on Equity (ROE) also improved to 7.04 per cent for Q1FY24 as against 4.44 per cent for Q1FY23.

Total Business of the bank grew by 16.06 per cent year-on-year to Rs 4,13,972 crore as on June 30, 2023 as against Rs 3,56,677 crore as on June 30, 2022. Total Deposits rose 10.81 per cent year-on-year basis to Rs 2,49,694 crore as on June 30, 2023 as against Rs 2,25,328 crore as on June 30, 2022.

Gross Advances grew 25.07 per cent year-on-year to Rs 1,64,278 crore as on June 30, 2023 as against Rs 1,31,350 crore as on June 30, 2022.

The bank’s Retail, Agriculture & MSME (RAM) business stood at Rs 85,952 as on June 30, 2023 as against Rs 72,523 crore as on June 30, 2022, registering an improvement of 18.52 per cent.

Retail Advances stood at Rs 35,280 crore as on June 30,2023 against Rs 28,238 crore as on June 30,2022 registered a growth of 24.94 per cent, fuelled by Home loan and Vehicle loan portfolio which registered a growth of 23.08 per cent and 23.79 per cent respectively.

The agriculture advances stood at Rs 21,690 crore as on June 30, 2023 as against Rs 19,060 crore as on June 30, 2022, registered a growth of 13.80 per cent. Advances to MSME sector stood at Rs 28, 982 crore as on June 30, 2023 as against Rs 25,225 crore as on June 30, 2022, registered a growth of 14.89 per cent.

Business per employee improved to Rs. 18.89 crore, during Q1FY24 as against Rs.16.02 crore for the same period of preceding year.

On asset quality front the bank’s gross NPA improved to 4.48 per cent as on June 30, 2023 from 7.42 per cent as on June 30, 2022, regestering a decline of 294 bps. Net NPAs also improved to 1.18 per cent as on June 30, 2023 from 2.49 per cent as on June 30, 2022, showing a decline of 131 bps.

Provision Coverage Ratio stood at 94.88 per cent as on June 30, 2023 from 91.96 per cent as on June 30, 2022, registering an improvement of 292 bps on year-on-year basis.

Bank’s Capital Adequacy Ratio (CRAR) improved to 16.85 per cent as on June 30, 2023 as compared to 14.13 per cent on June 30, 2022, with Tier 1 ratio of 14.16 per cent as on June 30, 2023 as against 11.29 per cent as on June 30, 2022, registering an improvement of 272 bps and 287 bps in CRAR and Tier 1 respectively.