UCO Bank suffers loss of Rs 1,715 crore in Jan-Mar 2016 quarter

New Delhi: State-owned UCO Bank today reported a net loss of Rs 1,715.1 crore for the March quarter on account of surge in bad loans.

The bank had posted a net profit of Rs 209.2 crore in the January-March quarter of 2014-15, UCO Bank said in a statement.

Tough time for public sector banks. Reuters

Tough time for public sector banks. Reuters

Total income declined to Rs 4,745.4 crore in the quarter under review as against Rs 5,263.3 crore a year-ago.

As far as asset quality is concerned, the gross NPAs as a percentage to total advances rose significantly to 15.43 percent in the fourth quarter of the last fiscal as against 6.76 percent in the same period a year ago.

Its net NPAs also increased to 9.09 percent from 4.30 percent at the end of March 2015.

As a result, provisions other than tax and contingencies increased to Rs 2,344.8 crore during the quarter compared with Rs 968.38 crore in the year-ago period.

NPAs over 10 percent may prompt RBI to initiate "prompt corrective action" with the view to improve internal processes to deal with bad loans.

For the entire 2015-16, the bank reported a loss of Rs 2,799.2 crore. It had posted a profit of Rs 1,137.8 crore in the previous fiscal.

The total income declined to Rs 20,157.2 crore during the fiscal as against Rs 21,362.5 crore in 2014-l5.

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Updated Date: May 13, 2016 15:52:51 IST

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