Public sector lender UCO Bank on Tuesday reported a net loss of Rs 440 crore in the first quarter ended June 30 as compared to Rs 257 crore profit in the year-ago period.
In comparison to the March quarter of FY16 when the loss figure was Rs 1,716 crore, the bank has managed to cut down losses in the June quarter, said Chief Executive and Managing Director RK Takkar. He said that the bank’s gross NPAs are at 17.16 percent and net NPA is at 10.04 percent.
He said slippages in the June 2016 quarter were around Rs 3,100 crore which resulted in net addition of NPAs."For the current quarter ending September our slippages are estimated to be between Rs 1,500-2,000 crore. So, these are basically accounts which are on the watch list. So, we are trying to contain this figure within this level and hopefully we should be able to do that."
Below is the verbatim transcript of RK Takkar’s interview to Ekta Batra on CNBC-TV18.
Q: We are still awaiting your numbers to hit the exchange. So, can you just take us through the highlights and what exactly was your net profit this time, your net interest income (NII) growth as well as your gross non-performing loans (NPLs)?
A: This time in this quarter June ending 2016 the total business of the bank was Rs 3,27,000 crore and we incurred a loss of Rs 440 crore in this current quarter vis-à-vis the quarter of last 2015 there was a profit of Rs 257 crore. But if we compare with the March figure in the March quarter we incurred a loss of Rs 1,716 crore. So, that loss has come down drastically and as far as the non-performing asset (NPAs) are concerned our gross NPAs are 17.16 percent the gross NPAs and net NPA is at 10.04 percent.
Q: So, your Gross NPLs have crossed 17 percent this quarter.
A: Yes.
Q: So, that has actually worsened as compared to the 15 percent as you clocked in the previous quarter. What has resulted in the worsening? Can you take us through what your fresh slippages were this quarter compared to the last quarter?
A: If you compare vis-à-vis the last quarter ending March, March the slippages were almost Rs 8,000 crore vis-à-vis our slippages in the June 2016 quarter was around Rs 3,100 crore and we had a recovery of Rs 1,427 crore to be precise. So it resulted in a net addition of NPAs to the extent of Rs 1,550 crore. So, that was one factor which increased our percent and secondly was a denominator factor of advances. Our advances reduced by Rs 4,000 crore odd as compared to the last quarter. So, that resulted in the percent going up. But, overall there have been a small increase in the NPAs.
Q: So, Rs 3,100 crore. How much of it actually slipped from the restructured book, how much of it was fresh restructuring this time?
A: Out of NPAs restructured books would be around Rs 500 crore which slipped into NPA and fresh restructuring during this quarter has been around Rs 340 crore in this quarter.
Q: What is your watch list? What do you envisage in terms of slippages going forward as well as an Small and medium-sized enterprises (SME) II account. So, cumulatively SME-II plus what you would possibly envisage as accounts which could slip in the coming quarters, what would your watch list be?
A: For the current quarter ending September our slippages is estimated to be between Rs 1,500-2,000 crore. So, these are basically accounts which are on the watch list. So, we are trying to contain this figure within this level and hopefully we should be able to do that plus we are trying to have some resolution in the already NPA accounts and we are just focussing more on the recovery aspect. So, that should help us improving our figures.
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