New Delhi, Feb 6 () Public sector UCO Bank on Thursday said it has marginally narrowed its net loss to Rs 960.17 crore for the third quarter ended December, impacted by elevated levels of bad loans and provisioning.
The Kolkata-based bank had reported a net loss of Rs 998.74 crore during the corresponding October-December period of the previous fiscal year.
Total income during the third quarter of 2019-20, however, rose to Rs 4,514.21 crore as against Rs 3,585.56 crore earlier, UCO Bank said in a regulatory filing.
The bank's bad loans ratio remained fairly high, though significantly lower than last year, at 19.45 per cent of the gross loans at the end of December 2019, from 27.39 per cent in the year ago period.
Net NPAs halved to to 6.34 per cent from 12.48 per cent.
In value terms, the gross NPAs stood at Rs 22,139.65 crore, down from Rs 31,121.79 crore at December-end, 2018.
Net NPAs reduced to Rs 6,199.65 crore from Rs 11,755.61 crore.
Provisions for bad loans were trimmed to Rs 1,645.51 crore for the quarter under review, from Rs 2,243.85 crore a year ago.
However, the overall provisions and contingencies were higher for the quarter at Rs 2,170.69 crore, compared to Rs 1,399.56 crore.
The non-performing loans provisioning coverage ratio stood at 83.71 per cent as on December 31, 2019, UCO Bank said.
On divergence of bad loans during 2018-19, the lender said the net loss was adjusted to Rs 5,225.53 crore from the earlier reported Rs 4,321.09 crore.
The gross NPAs as on March 31, 2019 as reported by the bank was Rs 29,888.33 crore, while the RBI assessed it at Rs 31,105.75 crore, leading to a divergence of Rs 1,217.42 crore.
Net NPA divergence was of Rs 165.05 crore and the divergence on provisioning stood at Rs 1,390.17 crore.
"The bank has made full provision against said divergence as at December 31, 2019," it added.
Banks are mandated to report the divergence in case additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the reported profit before provisions and contingencies.
For additional gross NPAs identified by RBI exceeding 15 per cent of the reported incremental gross NPAs, then too the banks are required to disclose divergence from prudential norms on income recognition, asset classification and provisioning.
Stock of UCO Bank jumped 5.65 per cent to close at Rs 15.90 on BSE. KPM ABM
Next Story
I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
Why are so many elite coaches moving to Western countries?
Global GDP to face a 19% decline by 2050 due to climate change, study projects
5 things to keep in mind before taking a personal loan
Markets face heavy fluctuations; settle lower taking downtrend to 4th day
Move over Bollywood, audio shows are starting to enter the coveted ‘100 Crores Club’
