UCO Bank Q1 results: PAT jumps over 21% to ₹124 cr, asset quality improves

Net interest income (NII) came in at ₹1,649.54 crore in Q1FY23 rising by 12.96% from ₹1,460.23 crore in Q1 of last year. However, NII was marginally down from ₹1,652.38 crore in Q4FY22.

There was a steep decline in the bank’s provisions during Q1FY23. The lender posted a 75.66% decline in provisions and contingencies to ₹246.83 crore compared to ₹1,014.23 crore in Q1FY22. Meanwhile, provisions dropped by 46.98% from ₹465.60 crore in the fourth quarter of FY22.

Considering the likely impact of the Covid-19 pandemic. The bank is holding an adhoc provision of ₹715 crore as of June 30, 2022 (reversed ₹285 crore during the quarter ended June 30, 2022) to meet any exigencies arising out of the Covid-19 pandemic, the bank said in the audit report.

Also, following RBI circular on the prudential framework for resolution of stressed assets, the bank holds additional provision of ₹449.26 crore in 7 accounts.

In terms of asset quality, the bank’s gross NPA was at ₹9,739.65 crore in Q1FY23 versus ₹11,321.76 crore in Q1FY22 and ₹10,237.43 crore in Q4FY22. In percentage terms, gross NPA was at 7.42% in Q1FY23 against 9.37% in Q1FY22 and 7.89% in Q4FY22.

The bank’s net NPA was at 2.49% in Q1 of this fiscal compared to 3.85% in Q1FY22 and 2.70% in Q4FY22.

“The outbreak of Covid -19 pandemic has adversely impacted the economic activity across the Globe including the Indian economy during the last two years. Bank is continuously monitoring the situation and taking all possible measures including digital initiatives to ensure continuance of customer outreach & full-fledged banking operations,” it added.

On BSE, UCO Bank was trading at ₹11.81 apiece down by 2.64% at around 3.23 pm. The shares have touched an intraday high of ₹12.30 apiece.

The company’s market valuation was around ₹14,143.90 crore.

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