UCO Bank’s financials on strong ground in Q3 of FY24

Guwahati: UCO Bank published its financial results for the quarter or for nine months ended December 31, 2023, displaying remarkable achievement in the third quarter, with 3 months to go in this financial year.

Key Highlights of the Results -

Business Growth -Total Business grew by 10.46% to Rs.435456 crore on year-on-year, wherein Gross Advances increased by 18.63% to Rs. 179195 crore on year-on-year & Total Deposits grown by 5.38% on year-on-year to Rs.256261 crore.

Advances in Retail, Agriculture & MSME (RAM) Sectors - RAM segment of the Bank increased by 17.70% to Rs.93720 crore on year-on-year backed by 18.01% year-on-year growth in Retail advances , 13.22% year-on-year growth in Agriculture advances and 20.79% year-on-year growth in MSME advances.

Reduction in NPA -Gross NPA reduced by 178 bps to 3.85% as on 312023 whereas Net NPA reduced by 68 bps to 0.98% as on 31.12.2023.

Strong Capital Adequacy Ratio - Capital Adequacy Ratio (CRAR) improved by 169 bps to 16.01 % as on 31.12.2023 wherein Tier I Capital Ratio improved by 196 bps to 13.53% as on 31.12.2023 on y-o-y . Improved Profitability& Return -Operating Profit for the nine months ended 31.12.2023 stood at Rs.3303 crore showing an increase of 10.69% to on y-o-y basis. Return on Equity for the quarter registered an improvement of 80 bps to13.07% on y-o-y basis

Credit to Deposit Ratio registered an improvement of 781 bps to 69.93% on year-on-year basis.

Business Highlights

Total Business grew by 10.46% on year-on-year to Rs.435456 crore as on 31.12.2023 from Rs.394229 crore as on 31.12.2022. Total Deposits increased by 5.38% on year-on-year basis to Rs.256261 crore as on 31.12.2023, from Rs.243170 crore as on 31.12.2022.

 Gross Advances grew 18.63 % on year-on-year to Rs.179195 crore as on 31.12.2023 as against Rs.151059 crore as on 31.12.2022.

RAM (Retail, Agri & MSME) business stood at Rs.93720 crore as on 31.12.2023, as against Rs.79627 crore as on 31.12.2022, registering an improvement of 17.70% on a year-on-year basis.

Retail Advances stood at Rs.38207 crore as on 31.12.2023, as against Rs.32375 crore as on 31.12.2022, registering a growthof18.01% on year-on-year basis, fuelled by Home loan and Vehicle loan portfolio, which registered a growth of 20.67% and 28.92% respectively on a year-on-year basis.

Agriculture Advances stood at Rs.23353 crore as on 31.12.2023, as against Rs.20627 crore as on 31.12.2022, showing a growth of 13.22% on a year-on-year basis.

 Advances to MSME sector stood at Rs.32160 crore as on 31.12.2023 as against Rs.26625 crore as on 31.12.2022, registered a growth of 20.79% on year-on-year basis.

Business per employee improved to Rs.20.06 crore during Q3FY24 as against Rs.18 crore for the same period of preceding year.

Operating Profit for the nine-month ended 31.12.2023 stood at Rs.3303 crore registering a growth of10.69% on year-on-year basis as against Rs.2984 crore for the nine months that ended 31.12.2022. Operating Profit for the quarter ended 31.12.2023 stood at Rs.1119 crore as against Rs.1354 crore for the quarter ended 31.12.2022 on account of higher provisioning, whereas Operating Profit for the quarter ended  30.09.2023 was Rs.982 crore registering a growth of 13.95% on q-o-q basis.

Net Profit for the nine month ended 31.12.2023 stood at Rs.1128 crore as against Rs.1281 crore for the same period in the preceding year, on account of higher provisioning. Net Profit for the quarter ended 31.12.2023 stood at Rs.503 crore as against Rs.653 crore for the quarter ended 31.12.2022 whereas Net Profit for the quarter ended  30.09.2023 was Rs.402 crore, registering a growth of 25.12% on q-o-q basis.

Net Interest Income (NII) for the nine months ended 31.12.2023 stood at Rs.5914 crore registering a growth of 10.11% on y-o-y basis as against Rs.5371 crore for the nine month ended 31.12.2022.

Asset Quality

Gross NPA improved to 3.85 % as on 31.12.2023 as against 5.63% as on 31.12.2022, registering an improvement of 178 bps.

Net NPA improved to 0.98 % as on 31.12.2023 as against 1.66% as on 31.12.2022, registering an improvement of 68 bps.

Provision Coverage Ratio improved to95.21% as on 31.12.2023 as against93.58% as on 31.12.2022, registering an improvement of 163 bps.

Capital Adequacy

Capital Adequacy Ratio (CRAR) improved to 16.01 % as on 31.12.2023 as compared to 14.32% on 31.12.2022, with Tier 1 ratio of 13.53% as on 31.12.2023 as against 11.57% as on 31.12.2022, thereby registering an improvement of 169 bps and 196 bps in CRAR and Tier 1 respectively.

Branch Network

Bank has a network of 3217 domestic branches and 2 overseas branches each at Hong Kong and Singapore Centre & 1 Representative office in Iran. Out of the total branches, Bank has 61.77 % i.e.1987branches in rural & semi-urban areas. Bank has 2475 ATMs and 9146 BC Points making the total number of 14841 touch points as on31st December 2023.

Bank had opened 26 new branches during the nine months ended 31.12.2023, stated a press release.

Also Read: UCO Bank posts highest-ever annual net profit of Rs 581.24 crore for Q4FY23

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