UCO Bank on Friday reported a net loss of Rs.1,715.16 crore for the March quarter due to high provisions and low net interest income and other income.
This was the second consecutive quarter when the bank reported a net loss. The bank reported a profit of Rs.209.28 crore a year ago.
Net interest income (NII), or the core income a bank earns by giving loans, fell 26.85% to Rs.933.11 crore from Rs.1,275.67 crore in the same quarter last year. Non-interest income fell 41.47% to Rs.387.80 crore from Rs.662.55 crore in the same period last year.
Gross non-performing assets (NPAs) rose 103.68% to Rs.20,907.73 crore at the end of the March quarter from Rs.10,265.05 crore a year ago. The bank reported gross NPAs of Rs.14,931.80 a quarter ago.
Provisions and contingencies jumped 142.14% to Rs.2,344.80 crore in the quarter, from Rs.968.38 crore a year ago. In the December quarter, the bank reported provisions of Rs.2,360.84 crore.
In December, the Reserve Bank of India (RBI) conducted an asset
quality review across the banking sector, following which banks were
asked to recognise visibly stressed assets as NPAs.
RBI also asked banks to make adequate provisions for these stressed
assets over the third and fourth quarters of the fiscal year that ended
in March.
As a percentage of total loans, gross NPAs stood at 15.43% at the end
of the March quarter, up from 10.98% in the previous quarter and 6.76%
in the year-ago quarter.
Net NPAs were at 9.09% as compared to 6.51% in the previous quarter and 4.3% in the same quarter last year.Shares of UCO Bank closed 5.94% lower at Rs.34.05 apiece on BSE, while India’s benchmark Sensex index fell 1.17% to 25,489.57 points.
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