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.