UCO Bank Q3 Net profit falls 23%

 


Public sector lender UCO Bank on January 24 reported a net profit of Rs 503.83 crore for the October-December quarter of financial year (FY) 2023-24, which marks a 22.8 percent falls as compared to Rs 652.97 crore clocked in the year-ago period.


The bank's gross non-performing asset (NPA) stood at 3.85 percent, down from 5.63 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 0.98 percent, improving from 1.66 percent on a year-on-year basis.


UCO Bank's total business grew by 10.46 percent to Rs.435456 crore on y-o-y, wherein gross advances increased by 18.63 percent to Rs. 179195 crore on y-o-y & total deposits grew by 5.38 percent on y-o-y to Rs.256261 crore.


Public sector lender net interest income (NII) for the nine months ended December 31, 2023, stood at Rs.5914 crore registering a growth of 10 percent on the y-o-y basis as against Rs.5371 crore for the nine months ended December 31, 2023. The Provision Coverage Ratio improved to 95.21 percent as on December 31, 2023. as against 93.58 percent as on December 31, 2022, registering an improvement of 163 bps on y-o-y basis and 14 bps on q-o-q basis.


UCO bank has a network of 3217 domestic branches and 2 overseas branches each at Hong Kong and Singapore Centre & 1 representative office in Iran as of December 31, 2023.

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Latest Bank merger news of PSU banks and PSU Insurance Company

 


A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.


The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.










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Government To Meet RBI, NPCI And TRAI After UCO Bank Incident: What Caused 'Rs 820 Crore Technical Glitch' At The Bank


Public sector UCO Bank on Thursday said it has been able to recover around Rs 649 crore out of Rs 820 crore, which is about 79 per cent of the amount “erroneously credited” to some customers due to a technical issue in the Immediate Payment Service (IMPS).


“The bank has initiated requisite actions to recover the balance amount of Rs 171 crore and the matter has also been reported to the law enforcement agencies for necessary action,” it said in an exchange filing.


During the period from November 10 to 13, the bank observed that due to technical issue in IMPS, certain transactions initiated by holders of other banks have resulted in credit to the account holders in UCO Bank without actual receipt of money from these banks, UCO bank said in another filing. Money is instantly transferred in the IMPS system from one account to another account.


“The bank, as a precautionary measure, has made the IMPS channel offline and is working closely with the stakeholders to resolve the issue and restore the IMPS services at the earliest,” it said.


“The bank re-iterates and assures that all other critical systems are operational and available. The bank continues to provide safe and secured services to customers,” it said.


The financial impact, if any, due to the development is yet to be ascertained and the bank will endeavour to intimate the ascertainment, the bank said.

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UCO Bank Q2 Net profit falls 20.3%


Public sector lender UCO Bank on November 3 reported a 20.3 percent fall in net profit at Rs 401.67 crore for the July-September quarter of the financial year 2023-24.


The Kolkata-headquartered bank reported a net profit of Rs Rs 504.52 crore in the year-ago period.



The bank's gross non-performing assets (GNPAs) declined to 4.14 percent from 4.48 percent of the year-ago period. Its net non-performing assets (NNPAs) fell to 1.11 percent from 1.18 percent.


Bank's total business grew by 10.56 percent to Rs.417145 crore on y-o-y, wherein Gross Advances up by 17.99 percent to Rs. 167734 crore on y-o-y & total deposits grew by 6.07 percent to Rs.249411 crore on y-o-y. UCO Bank's, Capital Adequacy Ratio (CRAR) improved to 16.83 percent as on September 30, 2023, as compared to 14.02 percent on September 2022, with Tier 1 ratio of 14.19 percent as of Sept 2023 as against 11.25 percent as on Sept 2022 registered an improvement of 281 bps and 294 bps in CRAR and Tier 1 respectively.


The bank has a network of 3213 domestic branches and 2 overseas branches in Hong Kong and Singapore & 1 Representative office in Iran. Out of the total branches, Bank has 61.78 percent i.e. 1985 branches in rural & semi-urban areas. The bank has 2472 ATMs and 8747 BC (Business Correspondents) Points making the total number of 14435 touch points as of September 30, 2023.



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UCO Bank Q1 Net profit grows 81%

 


Public sector lender UCO Bank on July 28 reported a 81 percent jump in net profit at Rs 223.48 crore in June quarter of the current financial year 2023-2024. The Kolkata-headquartered bank reported a net profit of Rs 123.61 crore in the year-ago period.


The bank's gross non-performing assets (GNPAs) declined to 4.48 percent from 7.42 percent in the June quarter of the previous fiscal. The net non-performing assets (NNPAs) fell to 1.18 percent from 2.49 percent.


Net Interest Income (NII) increased by 21.78 percent to Rs.2008.80 crore in Q1FY24 as against Rs.1649.54 crore for Q1FY23.


Net Interest Margin (NIM) improved to 2.86 percent as on 30.06.2023 as against 2.74 percent as on 30.06.2022, registering a growth of 12 bps.


Return on Assets (ROA) improved to 0.28 percent, registering an improvement of 11 bps from 30.06.2022.


Total Business grew by 16.06 percent on Y-o-Y basis to Rs. 413972 crore as on 30.06.2023 as against Rs.356677 crore as on 30.06.2022.

Total Deposits up by 10.81 percent on Y-o-Y basis to Rs. 249694 crore as on 30.06.2023 as against Rs.225328 crore as on 30.06.2022.


Capital Adequacy Ratio (CRAR) improved to 16.85 percent as on 30.06.2023 as compared to 14.13 percent on 30.06.2022, with Tier 1 ratio of 14.16 percent as on 30.06.2023 as against 11.29 percent as on 30.06.2022, registered an improvement of 272 bps and 287 bps in CRAR and Tier 1 respectively.


Bank said that network of 3209 domestic branches and 2 overseas branches each at Hongkong and Singapore Centre.


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Uco bank posted highest ever annual profit


Public sector UCO Bank on Tuesday reported an 86.2 per cent rise in net profit to Rs 581.24 crore for the March 2023 quarter on the back of a reduction in bad loans. The bank reported a profit of Rs 312.18 crore in the January-March quarter of 2021-22.


UCO Bank has posted its highest-ever annual net profit of Rs 1,862.34 crore in 2022-23 against Rs 929.76 crore in the preceding fiscal, registering a nearly 100 per cent year-on-year growth, the Kolkata headquartered lender said in a stock exchange filing.


The net interest income (NII) at Rs 7,343.13 crore during the year too was the bank's highest ever.


The bank's gross non-performing assets (NPA) in the fourth quarter declined to 4.78 per cent from 7.89 per cent a year ago.


Similarly, the net NPA too declined to 1.29 per cent in the January-March 2022-23 quarter from 2.7 per cent.


UCO Bank's capital adequacy ratio at 16.51 per cent at March-end 2023 increased by 277 basis points from 13.74 per cent a year ago

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UCO Bank Q1 Results: Profit rises 11% YoY


State-owned Uco Bank managed to report an 11% rise in June quarter net profit at Rs 224 crore against Rs 102 crore in the year ago period on account of sharp fall in provisions while its total income slipped due to treasury losses.


The bank booked a market to market loss of Rs 653 crore leading to negative other income of Rs 55 crore against Rs 857 crore in the year ago period.


In line with this, the operating profit fell 62.5% at Rs 440 crore for the quarter under review against Rs 1173 crore in the corresponding quarter in FY22.


However, a 76% dip in total provisions including those to cover bad loans at Rs 247 crore against Rs 1014 crore helped the lender show a rise in net profit.


Bank managing director Soma Sankara Prasad said the management does not expect more provisioning requirements in the September quarter against treasury operations as bond yields are likely to stay at the current levels or may come down with the Reserve Bank of India frontloading repo rate cuts.


Uco's net interest margin remained at a healthy 3.25% for the quarter.Its asset quality improved with gross non-performing assets ratio standing at 7.42% at the end of June as compared with 7.89% three months prior to that. Net NPA ratio stood at 2.49% against 2.7%.


The bank's capital adequacy ratio remained stable at 4.13%."We are not required to raise capital till March," Prasad said.

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UCO Bank Q4 results: Net profit jumps three-fold to Rs 312 cr

 


State-owned UCO Bank on Friday posted an over three-fold jump in net profit at Rs 312.18 crore for the quarter ended March 2022 as a fall in bad loans lowered the provisioning requirement.



The lender had posted a net profit of Rs 80 crore in the corresponding quarter a year ago.



Total income during the fourth quarter of 2021-22 was, however, down at Rs 4,362 crore, as against Rs 4,637 crore in the year-ago period, UCO Bank said in a regulatory filing.



For the full fiscal FY22, the bank's net profit grew more than five times to Rs 930 crore from Rs 167 crore in FY21.



Total income during the year was at Rs 18,082 crore, up from Rs 17,870 crore in the preceding fiscal.



The lender brought down its bad assets portion significantly as the gross non-performing assets (NPAs) came in at 7.89 per cent by end of March 2022, as against 9.59 per cent by end of March 2021.



Value-wise, the gross NPAs fell to Rs 10,237 crore from Rs 11,352 crore.



Similarly, the net NPAs were down at 2.70 per cent (Rs 3,316 crore) from 3.94 per cent (Rs 4,390 crore).



Thus, the provisioning for tax and other contingencies also fell to Rs 466 crore in Q4 FY22 from Rs 982 crore earlier.



Besides, the Kolkata-headquartered lender said it is holding Rs 4,707.36 crore provisions (including technical write-offs) -- 100 per cent of the requirement for accounts covered under the Insolvency and Bankruptcy Code (IBC).



On prudential framework of resolution of stressed assets, the bank holds additional provision of Rs 702.32 crore in nine accounts, it added.





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Uco Bank Q2 results: Profit surges 7-fold

 


State-owned Uco Bank reported a near seven-fold jump in net profit for the September quarter, riding on higher interest income and write-back of provisions made earlier.


Its net profit stood at Rs 205.4 crore as against Rs 30.1 crore in the year-ago period.

Net interest income (NIM), a key parameter of profitability, remained flat at 2.79% for the quarter under review, despite lower lending rates.

"We expect NIM to be at 3% or more in the near future," managing director AK Goel said. He said the lower cost of funds, better collection efficiency from stressed accounts as well as higher credit growth would help in the improvement of NIM.

We expect advances to grow around 10% for the full year, Goel added.

The Kolkata-based lender's operating profit rose 24% at Rs Rs 1,334 crore as compared with Rs 1,076 crore in the year-ago quarter. Net interest income rose about 15% at Rs 1,598 crore from Rs 1,393 crore over the same period last year. Other income grew 31.2% YoY to Rs 936 crore.
Goel said the bank made an additional provision of Rs 250 crore towards Covid-19 related risk on asset quality, taking the total additional Covid-related provision to Rs 750 crore. Total bad loan provisions rose to Rs 1,595 crore in the September quarter from Rs 1,032 crore in the year-ago period.

The bank's total provision, however, came down to Rs 1,019 crore during the period from Rs 1,301 crore on account of write-backs of provisions made earlier. The bank has recovered Rs 550 crore from written-off accounts, taking the total recovery and upgradation to Rs 1,876 crore during the quarter.

Uco's asset quality improved with the gross non-performing assets (NPA) ratio falling to 8.98% at the end of September from 11.62% a year back. Net NPA stood at 3.37%, down from 3.63%. Its provision coverage ratio rose to 90% from 89.82% over the same period.

Its total advances grew 5.7% to Rs 1.22 lakh crore with retail, agriculture and MSME sectors now contributing about 64% to it.
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RBI lifts PCA restrictions from UCO Bank

 


State-owned UCO Bank will no longer be subject to strict lending curbs imposed by the Reserve Bank of India (RBI) in May 2017, as the central bank said on Wednesday that the lender has been taken out of the prompt corrective action (PCA) restrictions.

Following UCO Bank’s exit, two banks -- Indian Overseas Bank and Central Bank of India -- remain under PCA. The central bank uses PCA framework to rein in banks that have breached certain regulatory thresholds in bad loans and capital adequacy. PCA entails curbs on high-risk lending, setting aside more money on provisions and restrictions on management salary

UCO Bank, RBI said, has provided a written commitment that it would comply with the norms of minimum regulatory capital, net non-performing asset (NPA) and leverage ratio on an ongoing basis. The Kolkata-based lender has also apprised RBI of the structural and systemic improvements that it has put in place to help in continuing to meet these commitments.

“The performance of the UCO Bank, currently under the prompt corrective action framework of RBI, was reviewed by the Board for Financial Supervision. It was noted that as per its published results for the year ended 31 March 2021, the bank is not in the breach of the PCA parameters," RBI said

As on 31 March, UCO Bank’s net NPA ratio stood at 3.94%, down 151 basis points (bps) from the same period last year. Its total capital adequacy ratio under Basel III was at 13.74%, up 204 bps from Q4 of FY20.

RBI governor Shaktikanta Das said on 6 August that it has been taking banks out of the restrictive framework based on assessments.

“We keep on reviewing that position. Recently, we removed one public sector bank from PCA tag. And as and when required requests are received, we analyse it, if it meets RBI’s regulatory requirements and if in our assessment, we feel confident that it’s a fit case, the RBI will do the needful. So, we have been taking banks out of PCA," said Das.

The PCA framework was introduced in December 2002 as a structured early intervention mechanism along the lines of the Federal Deposit Insurance Corp.’s (FDIC) PCA framework. These regulations were later revised in April 2017. In a speech on 12 October 2018, then RBI deputy governor Viral Acharya had defended the revised PCA norms, calling it the required medicine to prevent further haemorrhaging of bank balance sheets. He had added that in spite of their worse capitalization and stressed assets ratio compared to other banks, PCA banks had credit growth that was as strong as that of other banks up until 2014.

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UCO Bank Q1 results: Net profit jumps over 4-fold


State-owned UCO Bank on Tuesday posted over four-fold jump in its net profit to Rs 101.81 crore for the first quarter ended June 30, as bad loans fell significantly.The bank had reported a net profit of Rs 21.46 crore in the same quarter of the previous fiscal.


Sequentially, the net profit rose 27 per cent from Rs 80.03 crore in the March 2021 quarter.The total income during Q1 FY22 increased to Rs 4,539.08 crore, against Rs 4,436.57 crore in Q1 FY21, UCO Bank said in a regulatory filing.However, it was down from Rs 4,936.75 crore in the preceding March quarter.


Interest income during the quarter fell 2.5 per cent to Rs 3,569.57 crore, while income from other sources rose 25.3 per cent to Rs 969.51 crore.The Kolkata-headquartered lender trimmed its gross non-performing assets (NPAs or bad loans) significantly to 9.37 per cent of the gross advances as of June 30, 2021, as against 14.38 per cent at June-end 2020.


In value terms, the gross NPAs fell to Rs 11,321.76 crore from Rs 16,576.43 crore.Net NPAs were down at 3.85 per cent (Rs 4,387.25 crore) from 4.95 per cent (Rs 5,138.18 crore).The bank's provisions for bad loans and contingencies were, however, up at Rs 1,127.11 crore in the reported quarter from Rs 931.67 crore in the year-ago period.


Of this, the provisions for NPAs stood at Rs 844.76 crore, up from Rs 564.78 crore.Further, UCO Bank said it has kept the account of Delhi Airport Metro Express Pvt Ltd (DAMEPL) as standard, as per the Supreme Court order and RBI guidelines.


The bank said it has not treated an amount of Rs 194.14 crore towards DAMEPL as NPA. As required, the provision held against this outstanding is Rs 100.95 crore, it noted.Also, for accounts covered under the provisions of the Insolvency and Bankruptcy Code (IBC), the bank is holding a 100 per cent provision (including technical write-off) against a total outstanding of Rs 4,730.28 crore as of June 30, 2021, it added.


Besides, outstanding worth Rs 278.17 crore stands as restructured advances as of June 30, 2021, relating to a total of 1,724 MSME (micro, small and medium enterprises) sector accounts.Among others, the bank said it has exposure with two borrower's accounts belonging to the same group, and as per the NCLT Kolkata order, it has not declared these accounts as NPAs."Bank has filed an appeal against the order of NCLT, Kolkata Bench," it added.


On the COVID-19 induced moratorium related refund of interest on interest (or compound interest), UCO Bank said it has created a provision of Rs 35.35 crore as of March 31, 2021, towards interest relief.The same is yet to be refunded or adjusted, it added.The total COVID-19 related provisions held by the lender is Rs 500 crore.


UCO Bank also reported nine borrowal accounts as fraud during the quarter, involving a total amount of Rs 429.21 crore."During the current quarter, the bank has appropriated its entire accumulated losses of Rs 12,657.03 crore as of March 31, 2021, by utilising the balance standing to the credit of share premium account of the bank," it said.

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Uco Bank Q4 net profit jumps nearly five-fold

 


State-owned Uco Bank reported nearly five-fold jump in net profit at Rs 80 crore for the March quarter largely riding on treasury gains. Net profit was Rs 17 crore in the year ago period.

The bank also made Rs 167 crore net profit for the full financial year after continuous loss in the previous five financial years.

Operating profit grew 26% at Rs 1533 crore as against Rs 1217 crore over the same period. Its net interest income rose 12.6% at Rs 1413 crore against Rs 1255 crore while other income including earnings from treasury rose 78% at Rs 1370 crore from Rs 769 crore over the same period.

The bank's board approved a plan to raise up to Rs 3,000 crore by selling shares to help the lender create a capital buffer as suggested by the Reserve Bank of India to ward off the pandemic-led stress. Its capital adequacy ratio stood at 13.74% with core capital at 11.14% at the end of March.


Uco, which is 94.4% owned by the government, said that it would contemplate a follow-on public offer (FPO), qualified institutional placement or preferential issue for capital raising.

The bank's advances grew by 3% to Rs Rs 1.18 lakh crore at the end of March. Gross non-performing assets improved to 9.59% from 16.77% a year back with net NPA falling to 3.94% from 5.45%. The provision coverage ratio rose to 88.4% from 85.5% earlier

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Eye on this PSBs to be privatise: Govt mulls corporate, foreign bank participation

 


Indian policymakers are discussing ways to open up the banking sector via easing norms for corporate and foreign bank participation in acquiring public sector banks that the central govt is looking to privatise, sources with knowledge of the matter told ET Now.

Currently, industrial houses that have less than 60% of their turn over from non-financial entities are not allowed to apply for bank licences and their equity participation is also limited to 10%, as regulators have feared that this could risk financial stability because of the propensity of the corporates to milk banks for ‘self-loans.’

ET Now learns that there’s a rethink on the existing policy between policymakers even as the discussions are at an “early stage”. Sources say the government and the central bank may move with “abundant caution” and will take into account global experience and prior experience as well. 

Greater regulatory vigilance in terms of preferring corporate players with a long term 10-year business plan, “Fit & Proper Criteria” for corporate participation for taking equity in banks, tighter norms for related party transactions could be put in to ensure no excessive concentration or risks to financial stability. 

"We need to open up the banking system but the move will be designed with “abundant caution” and will need stonewalling from misuse. Opening up banking sector will come with greater regulatory vigilance on banks, fin institutions," one of the officials told ET Now.

Policymakers are also discussing allowing foreign banks with Indian subsidiaries to participate in buying government stake when state-owned banks like Central Bank of India, Bank of India, Punjab and Sind Bank, IOB and UCO Bank are privatised. 

The banking sector has been plagued with rising bad loans leading to decline in capital adequacy ratios and in some cases failure. Recently, Yes Bank was saved through government and RBI intervention when SBI lead consortium infused more capital into the private lender to save it from bankruptcy. Last week the government and RBI had to intervene to aid the rescue of Lakshmi Vilas Bank by the Indian subsidiary of DBS Bank, a move that reflected a change in thinking of the central bank and the government. 

Besides DBS, there are only one other foreign bank that has Indian subsidiaries -- SBM Bank. SBM Bank (India) Limited (Subsidiary of SBM Group) and DBS Bank India Limited have been issued licence on December 6, 2017, and October 4, 2018, respectively for carrying on banking business in India through a wholly-owned subsidiary. 

The widening of this move to allow foreign banks to buyout public sector banks when the government decides to privatise them will not only increase competition in the sector leading to efficiency but will also make a paradigm shift in the sector. The larger aim is to make Indian banks globally competitive. 

The discussion on this is at early stage but the policy could be timed with the government's larger privatisation policy that will allow selling of some Indian public sector banks. Bank of India, Central Bank of India, Bank of Maharashtra, Punjab & Sind Bank are some of the state-run lenders that the government is looking to privatise.

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UCO Bank Q2 results: Reports Rs 30-cr net profit


State-owned UCO Bank on Thursday reported a net profit of Rs 30.12 crore for the second quarter ended September 30. The bank had posted a net loss of Rs 891.98 crore during the corresponding quarter of the previous financial year.

Sequentially, the profit during the second quarter of 2020-21 was higher from Rs 21.46 crore in the first quarter ended June 2020.

Its total income was down at Rs 4,326.14 crore during the September 2020 quarter, from Rs 4,533.51 crore a year ago, UCO Bank said in a regulatory filing.

Interest income fell to Rs 3,614.61 crore during the quarter, compared with Rs 3,804.64 crore in the year-ago period.

The bank improved on its asset quality significantly by bringing down the gross non-performing assets (NPAs) to 11.62 per cent of the gross advances as on September 30, 2020, from 21.87 per cent as of September 2019.

In absolute value, the gross NPAs were down at Rs 13,365.74 crore as against Rs 25,665.14 crore.

Similarly, the net NPAs decreased to 3.63 per cent (Rs 3,831.88 crore) as against 7.32 per cent (Rs 7,238.33 crore).

Provisioning for bad loans also fell to Rs 1,032.14 crore, from Rs 2,034.07 crore a year ago.

The overall provisioning for bad loans and contingencies stood at Rs 1,300.20 crore, down from Rs 2,099.02 crore a year ago.

UCO Bank also said that as per a Supreme Court order and necessary guidelines issued by the Reserve Bank of India (RBI), it has kept Delhi Airport Metro Express Pvt Ltd as a standard account.

However, necessary provision of Rs 77.54 crore has been held by the bank against the amount of Rs 194.14 crore which has not been treated as NPA as per required norms.

"As per RBI guidelines issued during the financial year ended March 31, 2018, in respect of select borrowers accounts covered under provisions of the Insolvency and Bankruptcy Code (IBC), against total outstanding of Rs 762.49 crore, the bank is holding a provision of Rs 735.41 crore as on September 30, 2020," UCO Bank said.

The non-performing loan provisioning coverage ratio stood at 89.82 per cent as on September 30, 2020.

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UCO Bank reports net profit in Q1

UCO Bank on Friday reported a net profit to Rs.21.45 crore for the June quarter on the back lower provisions and higher other income.

The state-owned lender had posted a net loss of Rs.601.45 crore in the same quarter last year.

Net interest income, or the difference between interest earned on loans and that paid on deposits, decreased 5.11% to Rs.1266.78 crore for the quarter ended 30 June against Rs.1334.97 crore reported during the same quarter of the previous fiscal.

Other income, which includes core fee income, rose 22.83% year-on-year to Rs.773.93 crore during the period under review from ₹630.08 crore.

The lender made provisions worth Rs.1180.37 crore, versus Rs.1802.89 crore during the same quarter of the preceding fiscal.

Gross NPAs, as a percentage of gross advances, were at 14.38% compared with 24.85% as of June 2019 and 16.77% as of March, 2020.

After provisions, net NPA ratio was at 4.95% against 5.45% during January-March and 8.98% in the year-ago quarter.
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This PSB ready to come out of PCA framework: Official

State-owned UCO Bank, which posted net profit for two successive quarters, is ready to come out of the RBI's prompt corrective action (PCA) framework, an official said on Saturday.

In May 2017, the central bank had initiated PCA against the lender due to high non-performing assets and negative return on assets.

"We are ready to approach the RBI to come out of the framework, as the bank posted net profit for two successive quarters," the official said.

He said non-performing assets and capital adequacy norms levels as on June 30 also entitles the bank to move out of the lending constraints' purview.

Net NPA of UCO Bank during the quarter to June was lower at 4.95 per cent, while the capital adequacy ratio stood at 11.65 per cent, he said.

The bank had reported a net profit of Rs 21.46 crore in the first quarter.
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Uco bank posts net profit in Q4

Public sector lender UCO Bank on Friday reported net profit of ₹16.78 crore for the fourth quarter which ended on March 31, mainly due to fall in NPA and lower provisioning.

The Kolkata-headquartered lender had posted net loss of ₹1,552.03 crore during January-March quarter of 2018-19.

Sequentially also, there was a net loss of ₹960.17 crore in third quarter of 2019-20.

Income during the March quarter increased to 4,511.21 crore, from ₹4,148.52 crore in same period of preceding fiscal, UCO Bank said in a regulatory filing.

Bank's provisioning for bad loans and contingencies fell to ₹1,199.82 crore during the quarter as against ₹2,242.58 crore in the year-ago period.

For the full FY20, the bank trimmed on its net loss to ₹2,436.83 crore, compared to ₹4,321.08 crore loss in FY19. Income for the year increased to ₹18,005.55 crore as against ₹15,844.14 crore.

On asset front, the lender improved its gross non-performing assets (NPAs) to 16.77 per cent of the gross advances as on March 31, 2020, compared to 25 per cent in March 2019.

In absolute value, bank's gross NPAs stood at ₹19,281.95 crore as against ₹29,888.33 crore.

Net NPAs came down to 5.45 per cent ( ₹5,510.65 crore) from 9.72 per cent ( ₹9,645.92 crore).

UCO Bank said that in terms of the Supreme Court order and necessary guidelines issued by Reserve Bank of India (RBI), it has kept Delhi Airport Metro Express Pvt Ltd "DAMEPL" as standard account.

The bank said it has not treated a loan amount of ₹194.14 crore as NPA against DAMEPL. However, provision of ₹48.54 crore has been made, as required.

On divergence in asset classification and provisioning in terms of Risk Assessment Report (RAR) of the RBI for the year ended March 31, 2019, the bank said there was a gap of ₹1,217.42 crore in gross NPA reported by it, which was assessed by the RBI.

Bank has made full provision against the said divergence, it added. Thus, counting on the divergence, the bank said its net loss for FY19 widened to ₹5,225.53 crore as against ₹4,321.09 crore reported earlier.

The non-performing loan provisioning coverage ratio is 85.46 per cent as on March 31, 2020 as against 74.93 per cent a year earlier.

The bank has reported two loan accounts under Borrowal Fraud category to the RBI in the first quarter of 2020-21, and amount outstanding was ₹581.59 crore as on March 31, 2020, it said.

"The accounts were already under NPA category and provision amounting to ₹282.64 crore is held in the account as at March 31, 2020.

"Bank has made additional provision of ₹74.73 crore (25 per cent of remaining provision) as on March 31, 2020 and the remaining amount of ₹224.22 crore has been charged to Reserves and deferred for adjustment in subsequent quarters," UCO Bank said.
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Top Public Sector Banks In India 2020

These banks have emerged to be trusted brands where people deposit and invest money without thinking twice. Some of these banks stand out when it comes to offering services and are thus a preferred choice of greater number of people.


Here is a look at some of the best public sector banks in India.

1] State Bank of India 


Commonly known as SBI, this bank was set up in the year 1955. It is one of the oldest and the most trusted public sector banks in India. SBI is owned by the Indian government. It offers all kinds of banking services and is known for maintaining transparency in its dealings. It boasts of more than 40 crore satisfied customers.

After receiving an overwhelming response from people in India, the bank went on to open its branches worldwide. Today, it has nearly 200 offices in 36 different countries.  The headquarters of SBI are located in Mumbai.

2] Bank of India

This bank was established in the year 1906 as a privately owned entity. However, after the nationalization of banks, it became a public sector bank. This change took place back in 1969. The bank has 5,500 branches operating across the country. 

It has been serving millions of Indians by catering to their banking requirements.The bank also has its branches outside the country. It operates in 22 other countries with around 60 branches. New York, Paris, London and Singapore are among the countries where Bank of India has its branches.

3] Punjab National Bank

This bank came into being in the year 1895. It was founded under the guidance of one of the greatest Indian leaders of all times, Lala Lajpat Rai. The bank was established as a part of the Swadeshi movement. PNB was managed solely by Indians.

It became extremely popular in the pre-independence era and is still trusted as much. It offers several banking services and is known for providing quality banking products. The bank has around 7000 branches and has its presence in every nook and corner of the country.

4] Bank of Baroda

Bank of Baroda was opened in Vadodara, Gujrat in the year 1908. The bank is known to offer quality banking and finance services to its customers ever since its inception.

It is known to be the second largest nationalized bank in the country. The bank does not only operate in India but has its presence around the world. It operates in as many as 25 countries across the globe with more than 75 million happy customers. Dena bank and Vijaya bank merged with Bank of Baroda recently thereby making it an even bigger entity.

5] Central Bank of India

Central Bank came into being in the year 1911. It has been serving the customers happily ever since the beginning. The bank is known to offer numerous banking products.

It has a team of qualified and experienced bankers who have the answer to all your banking related queries and are always happy to help their customers. The bank has nearly 5,000 branches operating pan India. It also has offices in Hong Kong and Nairobi.

The headquarters of this bank is set up in Mumbai.

6] Canara Bank

Established in the year, 1906, Canara bank has its headquarters in Bengaluru. The bank has more than 6000 branches and nearly 9500 ATMs operating across the country. It offers several banking products and is known to offer impeccable service. It has more than 8 crore happy customers.

The bank does not only operate in India but has its branches in many other countries too. It has been serving people in New York, Hong Kong, Shanghai, London, Manama, Leicester, Johannesburg and Dubai.

7] Union Bank of India


Union Bank of India started as a limited company in the year 1919. It became a full-fledged bank in the year 1969 after nationalisation. The bank offers numerous banking products. By providing quality banking services consistently for years it has managed to acquire more than 5 crore customers.
Its customer base is increasing with every passing year. It is the proud owner of over 4500 branches spread across India. It also has branches in 4 other countries including Hong Kong, Sydney, Dubai and Antwerp.

8] UCO Bank


UCO Bank was established back in the year, 1943. It has its headquarters in Kolkatta, West Bengal. The bank has around 50 branches across the country and nearly 4000 plus service units. It has also made its presence overseas with branches in Singapore and Hong Kong.



9] Bank of Maharashtra

Bank of Maharashtra came into being in the year, 1935. The bank has been offering excellent service to its customers ever since its inception. It provides all kinds of banking and finance services. It has its headquarters in Pune. 87.74% of the total shares of the bank are held by the Government of India.

10] Indian Overseas Bank

Indian Overseas Bank was established back in the year, 1937. It has more than 3,400 branches across the country. The bank offers a host of banking services to meet the requirement of different segments of customers. After its success in the country, the bank went on to open branches in foreign land. It has 6 foreign branches.

You can safely open account and acquire other banking services from any of these banks!

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Uco Bank narrows loss in Q4FY20

India's oil import from Iran has helped state-owned Uco Bank cut losses by 27% in the fourth quarter as the bank gained Rs 13000-Rs 14000 crore of interest free floating fund from Indian oil refiners.

Uco has been one of the designated banks for settling payments for India's oil imports from Iran under US sanction.a

The floating fund helped the bank's low cost current and savings accounts (CASA) rise to 43.5% at the end of March 31 from 35.5% a year back and cost deposit fall 31 basis points to 4.87% on quarterly basis.

"Iran (oil import) has contributed to Uco's good performance," bank's executive director Charan Singh said.

Under US sanction, Indian oil refiners used to make payment to the designated rupee-account at Uco for importing oil from Iran. The Kolkata-based lender, in turn, made payments to Iranian exporters for exporting goods to India.

But now India has stopped purchases of Iranian oil in the wake of renewed US sanctions. "We aim to substitute the floating fund by normal deposit ," Uco's chief executive director AK Goel said, after announcing the financial results.

Uco has curtailed the fourth quarter loss to Rs 1552 crore from Rs 2134 crore. This was the bank's 14th consecutive quarterly loss.

"But I promise you FY20 will be a wonderful year for Uco Bank and we expect to be back in black in fourth quarter and get out of prompt corrective action this fiscal,"

Its operating profit grew over six times at Rs 691 crore from Rs 112 crore while net interest margin improved to 1.84% for the fourth quarter from 1.32% in the year ago period.

The lender's gross non performing assets shrunk to Rs 29888 crore (25%) as against Rs 31122 crore (27.4%) a quarter back. Net NPA ratio improved to 9.7% from 12.5% on a quarter-to-quarter basis.

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Uco bank net loss narrows in Q3

State-run Uco Bank has reported net loss of Rs 960 crore for the December quarter, marginally less than its net loss in the year ago period but higher than that of in the preceding quarter. The bank's operating profit, which is calculated before provisions and contingencies, however trebled at Rs 1211 crore against Rs 381 crore in the year agop period.

It had reported net loss of Rs 892 crore for the September 2019 quarter and Rs 999 crore for the December 2018 one, according to the bank's regulatory filing to stock exchanges.

The bank's total provisions and contingencies grew 62 per cent at Rs 2171 crore from Rs 1340 crore -- despite a 27 per cent dip in provisions to cover non performing assets (NPA) at Rs 1646 crore -- forcing it to report the straight 17th quarter loss.

Asset quality, Uco's nemesis for decades, has improved from the past year with gross NPA ratio at 19.45 per cent at the end of December compared with 27.39 per cent a year back. Net NPA ratio, which has fallen to 6.34 per cent from 12.48 per cent for the same period, has raised hopes of it coming down below the critical 6 per cent level which would help it to get out of the Prompt Corrective Action net. It was put under PCA in 2017.

The bank's profit from treasury more than halved in the December quarter at Rs 335 crore from Rs 806 crore a year back which restricted the fall in net loss.
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