UCO Bank posts net loss of Rs 634 cr in June quarter as NPA becomes one-fourth of advances

New Delhi: State-owned UCO Financial institution on Friday reported a internet lack of Rs 633.88 crore for the primary quarter ended June 2018.

This primary quarter loss, nevertheless, has narrowed each on the annual and sequential foundation. Throughout April-June interval of 2017-18, its internet loss stood at Rs 663.02 crore. Whereas within the March quarter of FY2017-18, the loss was Rs 2,134.36 crore.

Nevertheless, whole earnings in April-June 2018 elevated to Rs 4,360.88 crore from Rs 4,237.04 crore in the identical interval a yr in the past, the financial institution mentioned in a regulatory submitting.

Financial institution’s asset high quality worsened with the gross non-performing property (NPAs) hitting 25.71 p.c of gross advances as on 30 June, 2018 as towards 19.87 p.c by end-June 2017.

UCO Financial institution department in Mumbai. Reuters

In absolute worth, the gross dangerous loans or NPAs stood at Rs 29,786.41 crore by the top of the primary quarter of this fiscal, up from Rs 25,054.21 crore.

Internet NPAs have been 12.74 p.c (Rs 12,558 crore) as towards 10.63 p.c (Rs 12,010.95 crore).

Thus the provisions for dangerous loans have been raised considerably to Rs 2,038.33 crore for the June quarter of FY’19 from Rs 1,204.25 crore a yr in the past.

UCO Financial institution mentioned provision protection ratio for non-performing loans is 65.15 p.c.

The financial institution mentioned it was required to make extra provisions with respect to accounts below provisions of Insolvency and Chapter Code.

“Accordingly, the financial institution has made a further provision of Rs 627.79 crore in respect of all NCLT admitted borrower accounts,” UCO Financial institution mentioned.

The inventory of the financial institution closed 3.23 p.c down at Rs 19.45 on BSE.

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