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May 06, 2012, 12.02 PM IST | Source: Moneycontrol.com

Higher provisions hurt UCO Bank's Q4, net up just 12% YoY

State owned UCO Bank's fourth quarter net profit (Jan-March) rose at a slower pace of nearly 12% year-on-year to Rs 253 crore driven by a 34% rise in provisions and contingencies. However, net interest income or the difference between interest earned and paid out climbed more than 24% to Rs 1,050 crore.

Moneycontrol Bureau

State owned UCO Bank 's fourth quarter net profit (Jan-March) rose at a slower pace of nearly 12% year-on-year to Rs 253 crore driven by a 34% rise in provisions and contingencies. However, net interest income or the difference between interest earned and paid out climbed more than 24% to Rs 1,050 crore.

For the fiscal year 2011-12, net profit rose 22% to Rs 1,109 crore. The loan book expanded nearly 17% y-o-y to Rs 1.16 lakh crore surpassing the Reserve Bank of India's projected credit growth of 16% in FY12. However, deposits increased at a muted pace at just 6% to Rs 1.54 lakh crore.

During the quarter, the lender's gross non-performing asset ratio rose to 3.48% as against 3.13% recorded in the corresponding quarter of the previous year FY11. Its net NPA ratio too deteriorated to 1.96% compared with 1.84%. 

The bank's provisions shot up 34% to Rs 456 crore. According to the bank's release sent to stock exchanges, the bank is permitted to amortise its pension and gratuity liability in five years with effect 2010-11. The total sum of liability stands at Rs 800 crore. As a part of this exercise, the lender has charged Rs 40 crore in Q4, FY12.

UCO Bank's capital adequacy ratio was down at 12.35% versus 13.71%, YoY. It has proposed to pay a dividend of Rs 3 per share to its shareholders.

saikat.das@network18online.com

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