UCO Bank posts Q1 loss of ₹634 crore
The gross bad loans or NPAs stood at ₹29,786.41 crore by the end of the first quarter of this fiscal, up from ₹25,054.21 crore
New Delhi: State-owned UCO Bank on Friday reported a net loss of ₹633.88 crore for the first quarter ended June 2018. This first quarter loss, however, has narrowed both on annual and sequential basis.
During April-June period of 2017-18, its net loss stood at ₹663.02 crore. While in the March quarter of FY2017-18, loss was ₹2,134.36 crore. However, total income in April-June 2018 increased to ₹4,360.88 crore from ₹4,237.04 crore in the same period a year ago, the bank said in a regulatory filing.
Bank’s asset quality worsened with the gross non-performing assets (NPAs) hitting 25.71% of gross advances as on 30 June 2018 as against 19.87% by end-June 2017.
In absolute value, the gross bad loans or NPAs stood at ₹29,786.41 crore by the end of the first quarter of this fiscal, up from ₹25,054.21 crore. Net NPAs were 12.74 per cent (₹12,558 crore) as against 10.63% (₹12,010.95 crore). Thus the provisions for bad loans were raised substantially to ₹2,038.33 crore for the June quarter of FY’19 from ₹1,204.25 crore a year ago.
UCO Bank said provision coverage ratio for non-performing loans is 65.15 per cent. The bank said it was required to make additional provisions with respect to accounts under provisions of Insolvency and Bankruptcy Code.
“Accordingly, the bank has made additional provision of ₹627.79 crore in respect of all NCLT admitted borrower accounts,” UCO Bank said.
Stock of the bank closed 3.23% down at ₹19.45 on BSE.