Uco Bank Q4 result, reports loss of Rs 588 crore

State-run Uco Bank has reported fourth quarter net loss of Rs 588 crore on account of lower income and poor asset quality, compared with Rs 1715 crore loss in the year ago period. This was Uco Bank's sixth straight quarter loss. 

The board of the Kolkata-based lender has approved the issuance of 75 crore fresh equity shares to raise capital by way of follow-on public offer or institutional placement or preferential allotment. The government has infused Rs 1150 crore in March by subscribing its preferential shares. 

The bank's operating profit fell 79%at Rs 119 crore from Rs 568 crore a year ago while total income fell 6.5% at Rs 3906 crore (Rs 4178 crore). Its gross non performing loans stood at Rs 22541 crore at the end of FY17, which was 17.12% of total advances. The NPA ratio was one of the poorest in the industry. It was 15.43% a year ago and 17.18% at the end of December last year. 

Despite deterioration in asset quality compared to last year, Uco has chosen to provide less at Rs 701 crore as agaisnt Rs 2345 crore in the year ago period. The lower provisioning helped the bank show lower losses. Its provision coverage ratio was at 61% as against 53.87% a year ago, the bank said in a statement. 

The bank's total business stood at Rs 332940 crore with advances at Rs 131655 crore. Capital adequacy under Basel III was 10.9%, rose from 9.63% a year ago. Its net annual loss stood at Rs 1851 crore as against Rs 2799 crore in the preceding fiscal. The loss making Uco did not propose any dividend for FY17.