Uco Bank board of directors approve capital raising plan of Rs 3,000 crore
Uco Bank on Thursday said that its board of directors has approved a capital raising plan of Rs 3,000 crore for 2021-22.
The bank posted a net profit of Rs 80.03 crore for the fourth quarter ended March 2021 against a net profit of Rs 16.78 crore a year ago.
The bank has seen an improvement in the net interest income along with lower provisions for stressed assets during the quarter under review.
The net interest income of the city-based lender for the March quarter was Rs 1,412.61 crore against Rs 1,254.51 crore, a year-on-year growth of 12.60 per cent. The bank said that this is the highest net interest income in the last 22 quarters.
Total income was up 9.43 per cent to Rs 4,936.75 crore, aided by a 78.26 per cent growth in non-interest income.
The asset quality has improved with the gross non-performing assets as a proportion of advances falling to 9.59 per cent during the quarter against 16.77 per cent a year ago. Provisions for non-performing assets were also lower at Rs 769.81 crore against Rs 1,089.26 crore a year ago.
Net non-performing assets also improved to 3.94 per cent during the quarter against 5.45 per cent a year ago.
Provisions for non-performing assets were also lower at Rs 769.81 crore against Rs 1089.26 crore a year ago which along with a lower provision for taxes aided the growth in bottom-line. Provision coverage ratio of the bank as of March 31, 2021 was 88.40 per cent against 85.46 per cent as of March 31, 2020
The bank’s capital adequacy ratio improved to 13.74 per cent as of the quarter ended March 31, 2021 from 11.70 per cent in the corresponding year ago quarter. In its regulatory disclosure the bank has said that it has received Rs 2600 crore capital infusion from the centre. Government holds a stake of 94.44 per cent in the bank.
UCO Bank scrips at Rs 13.15 were up 1.39 per cent over the previous close at Bombay Stock Exchange.