UCO Bank Q2FY'24 recovery in bad loans through NCLT improves

The retail segment saw robust growth, particularly in home and vehicle loans, with advances rising 29.36 per cent

UCO Bank has recovered ₹414 crore from 26 accounts through the NCLT mechanism during the second quarter of the current fiscal, an official said on Sunday.

Of the recovered amount, ₹393 crore came from 14 accounts resolved, and ₹21 crore from 12 under liquidation, he said. “During the July-September quarter, ₹414 crore was recovered from resolution and liquidation combined. Recovery through the resolution process during the period was ₹393 crore, significantly higher than the year-ago figure of ₹82 crore and the June quarter’s ₹34 crore,” a senior bank official told PTI. Recovery under the National Asset Reconstruction Company Ltd (NARCL) — the government-backed bad bank — during the quarter was negligible, with only one account worth ₹4 crore resolved, he said.

As of September 30, 2024, UCO Bank had exposure to 238 accounts referred to the Insolvency and Bankruptcy Code (IBC) process, totaling ₹18,163 crore, the official said. By the end of September 2024, the lender had identified six accounts under NARCL with a total exposure of ₹878 crore. The Kolkata-headquartered bank maintained a 100% provision coverage ratio across stressed assets referred to NCLT and NARCL. The bank’s gross NPA (non-performing asset) ratio decreased to 3.18% for the September 2024 quarter, down from 4.14% a year ago, reflecting improved asset quality. The net NPA ratio year-on-year was reduced by 38 basis points to 0.73% during the quarter, the lender said.

Meanwhile, domestic advances grew significantly by 21.62% year-on-year, from ₹1,42,953 crore in September 2023 to ₹1,73,866 crore in September 2024. The retail segment saw robust growth, particularly in home and vehicle loans, with advances rising 29.36% year-on-year, the official said. This growth was driven by an 18.98% increase in home loans and a 38.66% surge in vehicle advances.

UCO Bank posted a 50% jump in its net profit to ₹603 crore for the second quarter of the current fiscal. The business of the bank for the July-September quarter of the current fiscal stood at ₹4,73,704 crore, showing an increase of 13.56% year-on-year, with gross advances at ₹1,97,927 crore and deposits at ₹2,75,777 crore. PTI BSM BDC