UCO Bank Q3 profit more than doubles to Rs 653 cr on decline in bad loans

UCO Bank on Tuesday reported more than two-fold jump in profit at Rs 653 crore for the quarter ended December 2022, driven by increase in interest income and decline in bad loans.

Its net profit stood at Rs 310 crore in the same quarter of the preceding financial year.

Total income increased to Rs 5,451 crore in the quarter from Rs 4,638 crore in the year-ago period, the bank said in a regulatory filing.

At the same time, interest income rose to Rs 4,627 crore as compared to Rs 3,919 crore in the same quarter a year ago.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 5.63 per cent of gross advances as compared to 8 per cent at the end of the third quarter of 2021-22.

Net NPAs too eased to 1.66 per cent from 2.81 per cent in the same quarter a year ago.

As a result, provision for bad loans declined significantly to Rs 220 crore from Rs 565 crore in the same period a year ago.

However, the capital adequacy ratio declined to 14.32 per cent in December quarter as against 14.56 per cent.

During the quarter under review, the Reserve Bank imposed a penalty of Rs 88 lakh, it said.