Updated January 24th, 2024 at 20:05 IST

UCO Bank reports 23% decline in Q3 consolidated net profit

The consolidated profit showed a sequential improvement from Rs 403 crore recorded in the preceding quarter.

Reported by: Business Desk
UCO Bank’s Q2 profit falls 20% annually to Rs 402 crore | Image:UCO Bank
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UCO Bank report: UCO Bank revealed a 23 per cent decline in its consolidated net profit for the December quarter of the fiscal year 2023–24. The net profit stood at Rs 505 crore, attributing the fall to increased provisions for wage revision. The standalone profit also witnessed a 23 per cent decrease, dropping to Rs 503 crore from the previous year's Rs 653 crore.

UCO Bank's Managing Director and CEO, Ashwani Kumar, explained that the dip in net profit during the quarter was primarily due to a substantial provision of Rs 277 crore related to wage revision. Despite this setback, Kumar emphasised the bank's robust overall performance. The consolidated profit showed a sequential improvement from Rs 403 crore recorded in the preceding quarter.

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Bank's credit growth

Kumar expressed confidence in the bank's credit growth, maintaining an outlook of 12 per cent to 13 per cent, and optimism about the upcoming budget being growth-oriented. He highlighted the bank's success in reducing slippages, with total slippages during the quarter dropping to Rs 481 crore, down from Rs 578 crore in the corresponding period.

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The bank showcased a positive trend in asset quality, with gross NPA decreasing by 178 basis points to 3.85 per cent and net NPA reducing by 68 basis points to 0.98 per cent on a consolidated basis by the end of December.

During the quarter, UCO Bank demonstrated a year-on-year growth of 10.46 per cent in total business, reaching Rs 4,35,456 crore. Gross advances increased by 18.63 per cent to Rs 1,79,195 crore, while total deposits expanded by 5.38 per cent to Rs 2,56,261 crore.

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Kumar also highlighted the successful recovery of 87-88 per cent of the Rs 820 crore mistakenly credited to customers' accounts due to a technical glitch in the past. The bank has recovered Rs 715 crore, with only Rs 105 crore remaining to be recouped from the deposit account holders.

The bank's commitment to maintaining a prudent recovery approach and its positive business outlook suggest a strategic path forward despite the challenging financial quarter.

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(with Reuters inputs)

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Published January 24th, 2024 at 20:05 IST