State-owned UCO Bank on Saturday reported a 15.76% year-on-year rise in net profit to ₹739.51 crore for the quarter ended December, driven by higher interest income, improved asset quality and lower provisioning.
The Kolkata headquartered lender had posted a net profit of ₹638.83 crore in the corresponding quarter of the previous financial year. During the October–December period, the bank’s total income increased to ₹7,521.16 crore, compared with ₹7,405.89 crore a year earlier, according to a regulatory filing.
Interest income remained the key growth driver, rising to ₹6,651.84 crore from ₹6,219.96 crore in the year ago quarter, reflecting steady advances growth and improved yield on assets. The bank’s operating profit for the quarter rose 5.96% to ₹1,680.24 crore, up from ₹1,585.69 crore in the same period last year.
A significant highlight of the quarter was the moderation in provisioning costs. Provisions and contingencies declined to ₹525.12 crore, compared with ₹589.51 crore in the year ago period, providing support to the bottom line.
On the asset quality front, UCO Bank reported a marked improvement. Gross non-performing assets (NPAs) fell to 2.41% as of December 31, from 2.91% a year earlier. In absolute terms, gross NPAs declined to ₹5,867.25 crore from ₹6,081.55 crore.
Net NPAs also improved significantly, declining to 0.36% (₹852.55 crore) from 0.63% (₹1,283.13 crore) in the corresponding period last year, indicating stronger recoveries and better credit discipline.
The bank’s capital adequacy ratio strengthened to 17.43% as of December-end, compared with 16.25% a year earlier, providing a comfortable buffer to support future growth.
The December-quarter performance underscores UCO Bank’s continued focus on balance sheet clean-up, profitability improvement and capital strengthening amid a challenging operating environment for public sector lenders.
Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.