UCO Bank Q2 net soars nearly 7-fold, asset quality improves

During a virtual property league aft declaring the results, Uco Bank MD & CEO AK Goel, without mentioning the sanction of Srei, said, “It volition beryllium precise premature to speech astir the atrocious indebtedness betterment from the 2 NBFCs. But, we volition stay optimistic that a bully betterment should travel (through insolvency solution process).”

Buoyed by an summation successful operating nett and a alteration successful provisions, state-run Uco Bank connected Thursday reported a astir sevenfold year-on-year leap successful its nett net to Rs 205.39 crore for the 2nd 4th this fiscal from Rs 30.12 crore for the aforesaid play past fiscal.

The city-based lender, which precocious came retired of the Prompt Corrective Action (PCA) measurement of Reserve Bank of India, showed a important betterment successful its plus prime during the 2nd 4th contempt the information that it recognised its vulnerability of astir Rs 1,000 crore successful Srei Infrastructure Finance and Srei Equipment Finance arsenic non-performing assets (NPAs).

The Kolkata seat of the National Company Law Tribunal (NCLT) earlier this period gave its support to commencement insolvency proceedings against Srei Infrastructure Finance and its wholly-owned subsidiary Srei Equipment Finance aft the RBI had filed insolvency applications against the 2 non-banking fiscal companies (NBFCs).

During a virtual property league aft declaring the results, Uco Bank MD & CEO AK Goel, without mentioning the sanction of Srei, said, “It volition beryllium precise premature to speech astir the atrocious indebtedness betterment from the 2 NBFCs. But, we volition stay optimistic that a bully betterment should travel (through insolvency solution process).”

During the 2nd quarter, the bank’s NPAs successful implicit presumption fell 3.64% quarter-on-quarter to Rs 10,909.79 crore from Rs 11,321.76 crore successful the archetypal 4th this fiscal. The Gross NPA ratio during the 4th nether reappraisal declined 39 ground points sequentially astatine 8.98%.

Provision for NPAs declined 35.3% y-o-y to Rs 1,032.14 crore successful Q2FY22 arsenic against Rs 1,595.39 crore during Q2FY21.

Operating nett during the play grew 24% y-o-y to Rs 1,334.16 crore. Net involvement income (NII) grew 14.68% y-o-y to Rs 1,597.73 crore, portion non-interest income saw a 31.37% y-o-y maturation astatine Rs 936.07 crore.

The lender’s home nett involvement borderline (NIM) improved marginally to 2.9% from 2.88% during the corresponding 4th past fiscal. The slope expects its NIM to further amended to astir 3% by the extremity of this fiscal.