| Arun Kaul in Calcutta on Saturday. Picture by Kishor Roy Chowdhury
Calcutta, Aug. 4: Uco Bank reported a 23.9 per cent increase in net profit at Rs 362.46 crore for the quarter ended June 30, 2012 on the back of a 47 per cent growth in income from treasury operations.
The bank’s net interest income (NII) also grew 29.1 per cent to Rs 1,043 crore on a 24 per cent year-on-year growth in advances to Rs 1,19,163 crore during the quarter.
“While a number of project-based loan sanctions were disbursed during the quarter, the low base a year ago also made the credit growth rate in the April-June quarter look big,” said Arun Kaul, chairman and managing director, Uco Bank.
Uco’s deposits grew 22.6 per cent to Rs 1,55,010 crore during the quarter.
Profit growth also comes on the back of a significant reduction in its cost to income ratio, which came down to 38.85 per cent from 43.57 per cent a year ago.
But the bank, like its peers, continues to feel the pressure of deteriorating asset quality. The gross non-performing assets of the bank went up to 3.88 per cent from 3.50 per cent at the end of June 2011 and 3.48 per cent at the end of March 2012. Net NPA also increased to 2.23 per cent from 1.96 per cent.
“There was a fresh slippage of loans worth Rs 800 crore during the quarter,” Kaul said.
Uco made a higher provisioning of Rs 408.87 crore during the quarter compared with Rs 309.74 crore in the year-ago period. However, its NPA provisioning coverage ratio dropped to 52.72 per cent at the end of June from 54.39 per cent in March-end. The NPA provisioning coverage ratio was 48.58 per cent at the end of June 2011.
Homegrown consumer goods player Godrej Consumer Products today announced a consolidated net profit of Rs 130.5 crore for the June quarter against Rs 239.3 crore in the year-ago period, boosted by a 39 per cent rise in sales.