UCO Bank, a government sector bank that is confident to meet lending targets of Rs. 3,000 crores during this festive season, and already Rs.1900 crores has been approved. The Kolkata-based bank has already fixed a target of amount Rs 3,00 crores lending in the retail and MSME segment in the last two months. They achieved the target faster and around Rs 1,800-1,900 crores, credit amount has been approved.
End of the second half-year budgetary, the banker’s retail advance and MSME advance amounted to Rs 26,311 crores and Rs 26,426 crores, listing half-on-half growth of 3.3% and 8.4% respectively.
The bank’s operating income for the September quarter posted an 8.7% quarter-on-quarter increase at Rs 1,330.31 crores as against Rs 1,223.3 crores for the June quarter. Operating income for the quarter was the largest in the last 22 quarters. The bank reported Rs 30.12 crores net income for the second quarter this budgetary.
Presently retail, MSME, and agriculture constitute around 62% of the bank’s loan book, moves from 48% earlier. Mostly they are concentrating on retail, MSME, and agriculture sectors as it will help to reduce their concentrating risk. The Reserve Bank of India (RBI) had in May 2017 declared Prompt Corrective Action (PCA) for UCO Bank in light of high non-performing assets and bad return on assets. The bank has newly requested the central bank to raise limitations as it has achieved all the guidance to come out of the PCA framework.
The banker states that UCO Bank has to remove home loan interest rates by 25 basis points which resulted from 18 November 2020. The corrected home loan interest rates start from 6.90 percent, irrespective of loan amount and occupation of the borrower.
The bank’s features quality raised widely in the second term as its total non-performing assets (NPAs) in the correct period fell 19.34% half-on-half to Rs 13,365.74 crores from Rs 16,576.43 crores in the first quarter of this budgetary period. Yearly, total NPAs decreased by a massive 48% from Rs 25,665.14 crores in the second quarter last revenue. During July – September, the Gross NPA reduction was Rs 3.42 crores, when cash recovery and latest income from bad loan accounts were at Rs 490 crores.
During the hour’s new floats were Rs 215 crores, down 44% q-o-q. Gross NPAs as a percentage of total loans fell 276 basis points (bps) to 11.62% from 14.38% during the last quarter. Gross NPA ratio also lowered by 132 bps respectively at 3.63%. The bank’s gross NPA ratio will be less than 10% and the net NPA ratio will be less than 3% at this budgetary rate.