UCO Bank Q4 net jumps nearly fivefold to Rs 80 crore

The financial institution, in a inventory alternate submitting, knowledgeable that its board of administrators authorized the proposal for elevating of fairness capital aggregating to Rs 3,000 crore by way of numerous modes equivalent to FPO, QIP and preferential concern, topic to obligatory regulatory approvals.

State-run UCO Bank on Thursday reported an almost five-fold year-on-year soar in its internet revenue to Rs 80.03 crore for the fourth quarter of FY21, from Rs 16.78 crore in the identical interval earlier fiscal, as its working revenue grew 26% y-o-y.

The lender, which continues to be below the Reserve Financial institution of India’s Immediate Corrective Motion framework, confirmed vital enchancment in its asset high quality throughout This fall as its NPAs in absolute phrases fell 41% y-o-y to Rs 1,1351.97 crore. The NPA ratio stood at 9.59%, which was 718 foundation factors down y-o-y. The gross NPA ratio decreased 21 bps on a quarter-on-quarter foundation from 9.80%.

The financial institution, in a inventory alternate submitting, knowledgeable that its board of administrators authorized the proposal for elevating of fairness capital aggregating to Rs 3,000 crore by way of numerous modes equivalent to FPO, QIP and preferential concern, topic to obligatory regulatory approvals. The capital adequacy ratio stood at 13.74% (below Basel III), with the frequent fairness tier-I ratio at 11.14% as on March 31.

Speaking to FE, MD & CEO AK Goel attributed the sharp rise within the internet revenue to vital rise in working revenue, curiosity revenue and non-interest revenue.

Working revenue stood at Rs 1,532.54 crore, in opposition to Rs 1,216.60 crore for a similar interval a yr in the past. Internet curiosity revenue rose 12.6% y-o-y to Rs 1,412.60 crore, whereas non-interest revenue noticed an over 78% y-o-y development to Rs 1,370.43 crore.

Complete advances stood at Rs 118,404.81 crore as on March 31, 2021, in opposition to Rs 114,961.44 crore as on March 31, 2020, registering a development of three%. On the finish of Q4FY21, internet curiosity margin stood at 2.70, 12 bps up from 2.58% in identical interval of FY20.

The availability protection ratio elevated to 88.40% as on March 31, from 85.46% within the year-ago interval. The availability for NPAs declined by 29.33% y-o-y at Rs 769.81 crore, in opposition to Rs 1,089.26 crore throughout Q4FY20.

Throughout This fall, the lender’s recent slippages stood at round Rs 2,449 crore. “Contemporary slippages got here primarily from retail, agriculture, MSME and enormous company,” Goel mentioned.