UCO Bank Q3 net loss widens to Rs 1,016 cr as bad loans spike
New Delhi: Public sector UCO Bank widened its net loss to Rs 1,016.43 crore in the quarter ended December 2017 as gross bad loans ratio hit over 20 per cent, resulting into nearly doubling the amount for provisioning requirement.
The bank had reported a net loss of Rs 437.09 crore in the corresponding period of the previous fiscal.
The losses were also higher compared sequentially against Rs 622.56 crore in the second quarter ended September of this fiscal.
Total income of the bank also fell to Rs 3,721.93 crore from Rs 4,864.21 crore in the same period a year ago, the bank said in a regulatory filing.
Bank's asset quality deteriorated with gross non- performing assets (NPAs) hitting 20.64 per cent of the gross advances by end-December 2017 against 17.18 per cent by end- December 2016.
Net NPAs too spiked to 10.90 per cent from 8.99 per cent.
In absolute value, gross NPAs were Rs 25,382.40 crore as on December 31, 2017, against Rs 22,181.26 crore in the same period of the last fiscal.
Net NPAs reached Rs 11,923.45 crore as against Rs 10,544.98 crore.
Thus, the provisioning for bad loans were to be raised to Rs 1,682.40 crore for October-December period of 2017-18, from Rs 914.32 crore in the same period of 2016-17.
UCO Bank said it has to make an additional provision of Rs 486.76 crore by March 2018 under the provisioning norms under Insolvency and Bankruptcy Code, of which, it has provided Rs 349.10 crore by December 31, 2017.
The return on assets plunged to (-) 1.75 per cent for the quarter, from (-) 0.77 per cent in third quarter of 2016-17.
The bank also informed that its board has considered the proposal to issue preference shares to government against the proposed Rs 5,132 crore capital infusion.
Stock of UCO Bank closed 0.68 per cent down at Rs 29.30 apiece on BSE today.
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