UCO Bank posted a significant increase in its net profit for the third quarter of fiscal year 2011. Its PAT for the quarter came in at Rs 301 crore versus Rs 246 crore YoY.
The bank's net interest income for the quarter also increased by 69.11% to Rs 1,062 crore from Rs 628 crore, while the net non-performing assets (NPAs) went up at 1.13% versus 0.89%. Gross NPAs too were up at 2.57% versus 2.01% (YoY). In an interview with CNBC-TV18, Arun Kaul, chairman of UCO Bank, spoke about the banks results and his outlook. Below is a verbatim transcript of the interview. Also watch the video. Q: Could you take us through your margins? How have they panned out this quarter versus last quarter and what would be the guidance going forward on this? A: If you look at Q3, my deposit growth has been approximately 16%, while advances growth was 20% and net interest income has moved up from Rs 628 crore to Rs 1,062 crore giving a growth of 69% in the quarter but if you look at nine months basis it has moved up from Rs 1,580 crore to Rs 3,100 crore which is nearly 90% growth. Operating profit has improved from Rs 462 crore to Rs 765 crore during the quarter that means 66% growth in the operating profits. On nine months basis operating profit has moved up from Rs 1,140 crore to Rs 2,115 crore which his 86%. Net profit has increased from Rs 246 crore to 301 crore during the quarter which is 22% growth. This growth has been primarily possible because of the fairly large growth in the credit as well as yield on advances coupled with we were able to reduce our cost of deposit substantially. We did get the re-pricing benefit. The cost of deposit has come down to 5.57% compared to 6.28% corresponding period last year. Q: With respect to your non-performing assetsDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
