UCO Bank on Monday reported a Rs 35.44-crore net profit for the third quarter, against a net loss of Rs 960.17 crore for the year-ago period, as provisions for non-performing assets (NPAs) declined 76% year-on-year and the operating profit rose 10%. The lender, which is still under the Reserve Bank of India’s PCA framework, had posted a net profit of Rs 30.12 crore for the second quarter.
The operating profit for the third quarter stood at Rs 1,334.40 crore, compared with Rs 1,210.52 crore for the corresponding period last fiscal. “I am happy to say that this is the highest operating profit of the bank in the last 25 quarters,” MD & CEO AK Goel said after declaring the results.
Net interest income (NII) rose 13.79% y-o-y to Rs 1,407.16 crore, compared to Rs 1,236.59 crore, while non-interest income saw a 16.26% y-o-y growth to Rs 864.38 crore. Total advances stood at Rs 116,797.24 crore at the end of the third quarter, registering a growth of 2.63% y-o-y. As on December 31, 2020, the net interest margin (NIM) stood at 2.87%, up from 2.62% a year ago.
Provisions for NPAs decreased to Rs 393.06 crore for the quarter under review, from Rs 1,645.51 crore in the same quarter of FY20. Gross NPAs in absolute terms fell over 14% quarter-on-quarter to Rs 11,440.47 crore from 13,365.74 crore. On a year-on-year basis, gross NPAs decreased by a whopping 48.32%, from Rs 22,139.65 crore in the December quarter of FY20.
At the end of Q3FY21, the gross NPA ratio stood at 9.80%, which was 182 basis points down quarter-on-quarter from 11.62%. Reported net NPA ratio fell 66 bps sequentially to 2.97%.
The capital adequacy ratio stood at 12.08% and CET-I ratio at 9.01% as on December 31, 2020.
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