UCO bank reported two folds jump in its Q3FY23 net profits

UCO Bank reported more than two-fold jump in profit at INR 653 crore for the quarter ended December 2022, driven by increase in interest income and decline in bad loans. Its net profit stood at INR 310 crore in the same quarter of the preceding financial year.

Total income increased to INR 5,451 crore in the quarter from INR 4,638 crore in the year-ago period, the bank said in a regulatory filing. At the same time, interest income rose to INR 4,627 crore as compared to INR 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 INR 220 crore from INR 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 INR 88 lakh, it said.