BANKS
UCO Bank records highest-ever net profit for fiscal; to raise Rs 2,000 cr
UCO Bank reports net profit of Rs 1,862 crore in FY23; loan book, global deposits and net interest income also touch record high for any fiscal.
UCO Bank reports net profit of Rs 1,862 crore in FY23; loan book, global deposits and net interest income also touch record high for any fiscal.
State-owned UCO Bank has reported its highest-ever net profit for a full-fiscal year and is planning to raise Rs 2,000 crore in FY24.
The Kolkata-headquartered bank’s loan book, global deposits and net interest income (NII) also touched a record high for any fiscal.
UCO Bank’s net profit stood at Rs 1,862.34 crore for FY23, up 100.30% from Rs 929.76 crore in FY22.
The loan book stood at Rs 1,61,629.45 crore in FY23, up 24.54% from the year-ago period.
Global deposits touched the highest level ever at Rs 2,49,337.74 crore, increasing by 11.28% year-on-year.
The lender’s NII stood at Rs 7,343.13 crore in FY23, up 13.44% from Rs 6,472.95 crore in FY22.
Net interest margin (NIM) stood at 2.87% for the fiscal.
For the fourth quarter of FY23, UCO Bank reported an 86.19% YoY rise in net profit to Rs 581.24 crore amid a decline in bad loans. In the same period a year ago, the bank’s net profit stood at Rs 312.18 crore. Sequentially, however, the lender’s net profit was higher at Rs 652.97 crore in the December 2022 quarter.
NII grew 19.34% to Rs 1,972.11 crore in the quarter ended March 2023, from Rs 1,652.38 crore in Q4 of FY22. On a quarter-on-quarter basis, it was up by just 1.03%
Provisions in the March 2023 quarter stood at Rs 450.54 crore compared to Rs 332.42 crore in Q3FY23 and Rs 465.60 crore in Q4FY22.
The bank’s asset quality improved, with gross non-performing assets (NPAs) declining to 4.78% in Q4FY23 compared with 7.89% in Q4FY22 and 5.63% in Q3FY23.
Net NPA declined to 1.29% in the quarter ended March 2023 as against 1.66% in Q3FY23 and 2.70% in Q4FY22.
UCO Bank's capital adequacy ratio rose by 277 basis points to 16.51% as on 31 March2023 from 13.74% a year ago.
UCO Bank's board members on Tuesday approved the issuance of up to 200 crore equity shares having a face value of Rs 10 each at an appropriate premium to raise equity capital of Rs 2,000 crore in the financial year FY24.
The fundraising of Rs 2,000 crore will be in one or more tranches. It will be conducted via market options such as follow-on public offers and qualified institutional placement.
