UCO bank reports 27% Y-O-Y rise in net profit for the December 2024 quarter

State-owned UCO Bank reported a 27% year-on-year increase in net profit for the December 2024 quarter, reaching Rs. 639 crore compared to Rs. 503 crore in the same period last year, despite a 73% rise in provisions.
The bank's operating profit grew by 42% to Rs. 1,586 crore, up from Rs. 1,119 crore a year ago. Provisions during the quarter amounted to Rs. 590 crore, higher than the Rs. 342 crore recorded in the previous year.
Net interest margin (NIM) for the quarter improved by 33 basis points to 3.17%, while net interest income rose by about 20% to Rs. 2,378 crore. Managing Director Ashwani Kumar stated that the bank aims to maintain NIM at 3%-3.10%.
Asset quality improved as the gross non-performing assets (NPA) ratio fell to 2.91% from 3.85% a year ago, and net NPA decreased to 0.63% from 0.98%. The provision coverage ratio stood at 96%.
Gross advances increased by 16.44% year-on-year to Rs. 2.09 lakh crore, while total deposits grew by 9.36% to Rs. 2.80 lakh crore. The credit-deposit ratio rose to 74.45% from 64.83% in March 2023.