UCO Bank has reported 12% increase in the Net Profit at Rs 252.84 crore over 24% increase in NII at Rs 1050.59 crore. Increase in slippages has led to growth in provisions and contingencies by 34% to Rs 456.09 crore and curtailed growth in the Net Profit. Asset Quality slipped in the quarter under review with higher slippages.

Asset Quality:

As per our calculations, PCR was also lower at 45% for the year ended March 12.

Business Highlights

• Business of the bank has improved 10% y-o-y to Rs 180498 crore at end of March 12 against Rs 163398 crore in the corresponding previous year.
• Advances grew healthy 17% to Rs 115540 crore in the quarter ended March 12.
• Deposits grew marginally by 6% to Rs 154003 crore at end of March 12 against Rs 145278 crore in the corresponding previous year. CASA deposits rose 7% to reach Rs 33867 crore at end of March 12 against Rs 31652 crore in the corresponding previous year. The share of CASA against domestic deposit improved marginally to 23.85% in March'12 from 23.20% in March'11.
• Credit Deposit Ratio stood at 76.30 % as on Mar'12 against 69.22% as on Mar'11.
• Average Cost of deposit during Q4 FY'12 stood at 7.47% against 6.34% in Q4 FY11, i.e. an increase by 113 bps. Average Yield on Advances during Q4 FY'12 was 11.30% against 9.86% in Q4 FY11. i.e. an increase by 144 bps.
• During the quarter Net Interest Margin reached 2.71% (2.35%).
• CAR of the bank was comfortable at 12.35% (Tier-I Capital: 8.09%; Tier-II Capital: 4.26%) at end of FY12 against 12.33% (Tier-I Capital: 7.79%; Tier-II Capital: 4.54%) a quarter ago.
• The Bank has opened 130 branches and installed 114 ATM's in quarter under review taking the total new branches opened in the year to 188 and ATM's to 256. It has also opened 13 new Retail Loan Hubs taking the total RLHs to 39. During the Financial year 755 officers and 866 clerks were recruited.
• Book value of share has reached Rs.94.72 at end of FY12 from Rs. 83.16 at end of FY11.

UCO Bank has reported 24% jump in NII at Rs 1050.59 crore mainly on the back of 35% increase in Interest earned at Rs 3105.60 crore. Interest earned grew 29% to Rs 3964.64 crore while that of Interest expended grew 31% to Rs 2914.05 crore. The other income declined 14% to Rs 251.99 crore and pulled Net Total Income up 15% to Rs 1302.58 crore.

Operating expenses grew marginally 3% to Rs 574.46 crore and pushed up operating profit up 26% to Rs 728.12 crore. Cost to income ratio has declined 490 bps in the quarter under review. Further, provisions and contingencies grew 34% to Rs 456.09 crore and led PBT up 14% to Rs 272.03 crore. After accounting 45% increase in taxation at Rs 19.19 crore, Net Profit was higher by 12% to Rs 252.84 crore. The bank has recognized MAT credit to the extent of Rs 292.26 crore for the year ended march 12 and has entitled for the same.

For the year ended March 12, the bank has posted 22% jump in the Net profit at Rs 1108.67 crore over marginal 1% increase in NII at Rs 3902.10 crore. Dip in the cost to income ratio by 130 bps and 5% decline in provisions and contingencies have aided growth in the Net Profit.

• During the year, the Bank has allotted 5818887 equity shares to GOI and 31375874 equity shares to LIC of India on 30 March 12 on preferential basis at an issue price of Rs 82.49 per share and received Rs 258.82 crore from LIC and Rs 48 crore from GOI respectively.
• The board of directors has recommended dividend of Rs 3 per share on face value of Rs 10 each for FY12.

UCO Bank: Financial Results