UCO Bank Reports 10 Consecutive Quarterly Loss

The major government-owned commercial bank, UCO reported its fourth quarter (Q4) ended March 2018 net loss at Rs 2,134 crore. The loss is almost four times compared to the year-ago period.

The bank faced its 10 consecutive quarterly loss after being weighed down by deteriorated asset quality. It had reported a loss of Rs 1,016 crore in December 2017 quarter and a Rs 588.19 crore loss for March 2017.

The Kolkata-based lender's YoY (year-on-year) gross NPAs (Non-Performing Assets) for the year grew to Rs 30,549.92 crore from Rs 22,540.95 in the previous year.

It also increased its provision for NPA to Rs 3,133.52 crore in March 2018 quarter from Rs 1,577.60 crore in the year-ago period, to make up for the deteriorating asset quality.

In its regulatory filing, UCO bank also reported that Rs 425.57 crore was set aside in respect of delinquent companies currently undergoing insolvency resolution at different tribunals of the National Company Law Tribunal (NCLT).

Net NPAs rose to 13.1 percent of the total assets to Rs 14,082.07 crore in January- March 2018 period from 8.94 percent (Rs 10,703.39 crore) last year. Its capital adequacy ratio was at 10.94 percent for the quarter under review.

UCO bank's board has approved the sale of 1.5 billion shares in multiple tranches to raise Rs 3,000 crore.

Its shares grew by 1.6 percent to Rs 19.10 on BSE (Bombay Stock Exchange) from firm market cues.