UCO Bank Q2 Results | Net profit jumps 50% to ₹603 crore, NII up 20% to ₹2,300 crore
Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, increased 20%, coming at ₹2,300.4 crore against ₹1,916.5 crore in the corresponding quarter of FY24.
The gross non-performing asset (GNPA) stood at 3.18% in the September quarter against 3.32% in the June quarter. Net NPA came at 0.73% against 0.78% quarter-on-quarter.
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In monetary terms, gross NPA stood at ₹6,293.86 crore against ₹6,420.12 crore quarter-on-quarter, whereas net NPA came at ₹1,406.44 crore against ₹1,473.42 crore quarter-on-quarter.
The bank’s Net Interest Margin (NIM) for Q2 of FY25 stood at 3.10%, showing an improvement from 2.84% in the corresponding quarter of the previous year. For the first half of FY25, the NIM was 3.09%, compared to 2.92% for the same period in FY24.
The total business of the bank stood at ₹4,73,704 crore as of September 30, 2024, showing an increase of 13.56% year-on-year, wherein Gross Advances increased by 18% to ₹1,97,927 crore on year-on-year and total deposits grown by 10.57% on year-on-year to ₹2,75,777 crore. Operating profit for the quarter ended on September 30, 2024, stood at ₹
1,432 crore showing an increase of 45.82% on year-on-year basis.
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Advances in the Retail, Agriculture & MSME (RAM) sectors of the bank increased by 20.16 % to ₹1,08,200 crore on a year-on-year backed by 29.36% year-on-year growth in retail advances,17.41% year-on-year growth in Agriculture advances and 11.32% year-on-year growth in MSME advances. Capital Adequacy Ratio (CRAR) stood at 16.84% as of September 30, 2024, with a Tier I Capital Ratio of 14.59%.
UCO Bank reported a Credit to Deposit Ratio of 71.77% as of September 30, 2024. The bank’s total business grew by 13.56% year-on-year, reaching ₹4,73,704 crore, up from ₹4,17,145 crore on September 30, 2023. Total deposits increased by 10.57% year-on-year to ₹2,75,777 crore, compared to ₹2,49,411 crore a year ago.
Gross advances saw robust growth, rising 18% year-on-year to ₹1,97,927 crore, up from ₹1,67,734 crore in the previous year. Business per employee also improved, reaching ₹22.10 crore during Q2 of FY25, up from ₹19.06 crore in the same period of the prior year.
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UCO Bank’s retail advances reached ₹47,039 crore as of September 30, 2024, marking a strong 29.36% year-on-year growth, driven by its home and vehicle loan portfolios. Home loans grew by 18.98%, while vehicle loans surged by 38.66% year-on-year.
Additionally, the bank’s agriculture advances rose by 17.41% year-on-year, reaching ₹26,987 crore as of September 30, 2024, up from ₹22,985 crore in the previous year. The results came after the close of the market hours. On October 18, shares of UCO Bank Ltd ended at ₹45.65, up by ₹0.55, or 1.22% on the BSE.
