Public sector UCO Bank on Monday reported a net profit of Rs 35.44 crore for the third quarter ended December 2020, on account of lower provisioning for bad loans. The Kolkata-based bank had reported a net loss of Rs 960.17 crore during the October-December period of the previous fiscal year.
Total income, however, fell marginally to Rs 4,466.97 crore in the third quarter of the current fiscal as against Rs 4,514.21 crore reported in the same period of 2019-20, UCO Bank said in a regulatory filing.
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The bank's bad loans ratio stood at 9.80 per cent of the gross loans in the quarter ended December 2020, as against 19.45 per cent in the year-ago period. Net non-performing assets (NPAs) were at 2.97 per cent against 6.34 per cent. Provisions for bad loans fell sharply to Rs 393.06 crore for the quarter under review from Rs 1,645.51 crore a year ago.
Meanwhile, the bank's MD & CEO A K Goel said in Kolkata that the lender has met all the parameters to come out of the prompt and corrective action (PCA) framework prescribed by the RBI in May 2017, due to negative return on assets and high NPA. Shares of UCO Bank were trading 2.64 per cent higher at Rs 13.22 apiece on the BSE.
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