InvestorQ : What explains the turnaround in UCO Bank in the Mar-20 quarter?
Archita Jajjoo made post

What explains the turnaround in UCO Bank in the Mar-20 quarter?

Answer
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Rashi Mehra answered.
3 months ago


UCO Bank reported net profits of Rs.16.78 crore for the Mar-20 quarter as compared to a net loss of Rs.1552 crore during the corresponding Mar-19 quarter. Even the Dec-19 quarter had reported a net loss of Rs.960.17 crore. Revenue income for the Mar-20 quarter was up nearly 10% at Rs.4511 crore in the Mar-20 quarter on a YOY basis.

One of the reasons for the turnaround to profits was the halving of provisioning for bad loans and contingencies at Rs.1199 crore for the Mar-20 quarter. For the fiscal year 2019-20, UCO Bank reported lower net losses at Rs.2,437 crore even as income for the quarter was up by over 14% at Rs.18,006 crore.

On the asset quality front, gross non-performing assets or NPAs improved to 16.77% but still remains far from the comfort zone. In value terms the gross NPAs of the bank fell from Rs.29,888 crore to Rs.19,281 crore as recoveries improved during the quarter. Net NPAs improved sharply to 5.45% from 9.72% hinting at the end of the asset quality cycle.