UCO Bank Q2 Results: Net Profit Dips Over 20% To Rs 402 Cr, Asset Quality Shines

In contrast to a net profit of Rs 505 crore in the same quarter last year, UCO Bank announced a 20% decrease in net profit on Friday, to Rs 402 crore for the quarter that ended in September 2023 compared to Rs 504.52 crore in the same period last year. In comparison to the same quarter last year, when it earned Rs 1,770 crore, its net interest income (NII) grew by 8.3% to Rs 1,917 crore in Q2FY24. NII dropped 4.6% sequentially from the Rs 2,009 crore recorded in Q1FY24. The state-owned bank saw an increase in total income from Rs 4,965 crore in Q2FY23 to Rs 5,866 crore in the quarter under review.

During Q2FY24, the bank said its total business expanded by 10.56% YoY to Rs. 417145 crore, with gross advances rising by 17.99% to Rs. 167734 crore and total deposits rising by 6.07% to Rs. 249411 crore. As of September 30, 2023, total deposits were Rs. 249411 crore, up 6.07% year on year from Rs. 235149 crore in the year-ago quarter. Gross advances at UCO Bank climbed 17.99% YoY to Rs. 167734 crore on September 30, 2023, from Rs. 42156 crore in the same period in 2022.

The bank said that its operating profit for the six months ended September 30, 2023, was Rs. 2184 crore, up 34.03% YoY from Rs. 1630 crore for the same period in 2022. Due to higher provisioning, net profit for the half-year that ended on September 30, 2023, was Rs. 625 crore as opposed to Rs. 628 crore for the same time the previous year. Nonetheless, net profit jumped by 79.74 per cent to Rs. 402 crores for the quarter that ended on September 30, 2023, from Rs. 223 crore for the quarter that ended on June 30, 2023.

Its Net Interest Margin (NIM)-Domestic increased by 21 basis points to 3.12% for the half year that ended on September 30, 2023, from 2.91% for the same period in 2022. Concerning asset quality, the bank said that net NPA improved to 1.1% as of September 30, 2023, up from 1.99% as of September 30, 2022, a 244 basis point improvement, and gross NPA improved to 4.14% as of September 30, 2023, up from 6.58% as of September 20, 2022, a 244 basis point growth. In a stock exchange statement, UCO Bank reported that, as of September 30, 2023, its Provision Coverage Ratio climbed to 95.07% from 92.90% in Q2FY23, representing a 217 basis point gain.

According to UCO Bank, its Capital Adequacy Ratio (CRAR) climbed to 16.83% as of September 30, 2023, from 14.02% in the year-ago quarter. The Tier 1 ratio also improved, going from 11.25% on September 30, 2022 to 14.19% as of September 30, 2023, representing growth of 281 bps and 294 bps, respectively. 3213 domestic branches, 2 international branches in Singapore and Hong Kong, and 1 representative office in Iran were reported by the bank during the quarter under review. The bank maintains 1985 branches in rural and semi-urban regions or 61.78% of all branches. As of September 30, 2023, the bank has 2472 ATMs and 8747 BC Points, for a total of 14435 touch points.