State-owned UCO Bank has reported a significant 50 per cent year-on-year (YoY) rise in net profit for the second quarter of the fiscal year, ending September 30, 2024. The bank’s net profit surged to ₹603 crore, up from ₹401.7 crore in the corresponding quarter of FY24.
The bank’s Net Interest Income (NII) saw a 20 per cent increase to ₹2,300 crore, compared to ₹1,916 crore in the same period last year. This growth highlights UCO Bank’s ability to capitalize on its lending activities while managing its deposit costs effectively.
In terms of asset quality, UCO Bank reported an improvement in its gross non-performing assets (GNPA), which stood at 3.18 per cent for Q2, down from 3.32 per cent in the previous quarter. Similarly, the net NPA reduced to 0.73 per cent from 0.78 per cent quarter-on-quarter. The monetary value of gross NPA stood at ₹6,294 crore, while net NPA came in at ₹1,406 crore.
The bank also reported a Net Interest Margin (NIM) of 3.10 per cent for Q2 FY25, an improvement from 2.84 per cent in the same period last year, signifying better profitability from core banking operations. For the first half of FY25, the NIM stood at 3.09 per cent, up from 2.92 per cent in H1 FY24.
UCO Bank’s total business reached ₹4,73,704 crore as of September 30, 2024, reflecting a 13.56 per cent YoY growth. Gross advances grew by 18 per cent to ₹1,97,927 crore, while total deposits increased by 10.57 per cent to ₹2,75,777 crore. The bank’s operating profit also saw a sharp 45.82 per cent YoY rise to ₹1,432 crore during the quarter.
Notably, the bank’s advances in the Retail, Agriculture, and MSME (RAM) sectors surged by 20.16 per cent YoY to ₹1,08,200 crore, driven by a 29.36 per cent growth in retail loans, a 17.41 per cent rise in agriculture loans, and an 11.32 per cent increase in MSME loans. Home loans increased by 18.98 per cent, while vehicle loans witnessed a robust 38.66 per cent YoY growth.
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UCO Bank’s Capital Adequacy Ratio (CRAR) stood at 16.84 per cent, with a Tier I Capital Ratio of 14.59 per cent, reflecting strong financial stability. The bank’s Credit to Deposit Ratio improved to 71.77 per cent as of Q2 FY25.
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