UCO Bank loss at ~600 cr; seeks capital from LIC, govt

UCO Bank has posted a net loss of nearly ~601 crore in the second quarter (Q2) of this fiscal year, against a net loss of about ~634 crore in the same period last fiscal year.

However, the bank posted an operating profit of about ~1,201 crore in the last quarter, which was the highest in the last 14 quarters, said A K Goel, managing director and chief executive officer, UCO Bank.

Ageing provisions for nonperforming assets (NPAs) led to high net loss in the last quarter, said Goel. The net NPA of the bank — as a percentage of total lending — stood at 8.98 per cent of the bank in the last quarter, against 9.72 per cent in the first quarter (Q1) of this fiscal year and 12.74 per cent in the same period last year.

The gross NPA of the bank in the last quarter stood at 24.85 per cent, against 25 per cent in Q1 and 25.71 per cent in the same period last year.

Thebankhassetarecovery target of ~2,000 crore every quarter, said Goel. Last quarter, the bank made a recovery of ~824 crore, while the slippages were ~1,233 crore.

The total provisions of the bank (other than current tax) and contingencies stood at ~1,803 crore in Q1 of 2019-20 (FY20), against ~1,781 crore in the same period of the last fiscal year. The net interest income of the bank for Q2 of FY20 stood at ~1,335 crore.

UCO Bank has assessed a total capital requirement of ~4,500 crore. The bank has written to LIC for fund infusion and will also seek capital from the government, said Goel.

At present, LIC holds 4 per cent stake in the bank, and the holding can go up to 15 per cent. The bank raised ~500 crore as tier II capital from LIC in the last quarter.

The bank has also raised ~266 crore through employee stock purchase plan.