Riding on lower provisioning, UCO Bank has posted 94 per cent rise in net profit at Rs 231 crore for the quarter ended September 30, 2011, against the corresponding period last year.
There has been an 18 per cent drop in provisions and contingencies during the quarter at Rs 475 crore, as against Rs 580 crore during the year-ago period. Gross non-performing assets increased by 72 per cent to Rs 3,542 crore while the provision coverage ratio dipped to 52 per cent (62 per cent).
The percentage of net non-performing assets vis-à-vis total loans increased to 2.11 per cent (1.18 per cent). Operating profit remained almost flat at Rs 711 crore (Rs 705 crore).
Provisioning
Net profit dropped on a sequential basis by 21 per cent from Rs 292 crore during the first quarter ended June 30, 2011.
Announcing the bank's performance during the quarter Mr Arun Kaul, chairman and managing director, UCO Bank, said, “The provisioning was lower on account of better recovery and as most NPAs were system-generated.”
Backed by a favourable interest rate scenario, the yield on advances increased to 11.43 per cent (9.91 per cent). However, the net interest margin fell to 2.84 per cent (3.23 per cent).
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