UCO Bank reports loss of Rs 2,437 crore in FY20, revenue down 14%

Public sector lender UCO Bank has closed financial year 2019-20 (FY20) with net loss of Rs 2,436.83 crore as compared to loss of Rs 4,321.08 crore in 2018-19. For the January-March quarter of FY20, the state-owned lender posted net profit of Rs 16.78 crore helped by rise in other income and decline in provisions. The bank had posted a net loss of Rs 1,552.02 crore in Q4 FY19, UCO Bank said in a filing to the Bombay Stock Exchange.

Total income increased by 13.64 per cent to Rs 18,005.55 crore in FY20 as against Rs 15,844.14 crore in FY19. In Q4 FY20, the total income rose by 8.74 per cent to Rs 4,511.21 crore from Rs 4.148.52 crore in March quarter of 2019.

Net interest income (NII), or the core income a bank earns by giving loans, dropped by 2.9 per cent to Rs 1,254.51 crore in Q4 FY20 from Rs 1,291.96 crore in Q4 FY19.

UCO Bank's other income jumped more than doubled to Rs 768.78 crore in Q4 FY20 against Rs 366.71 crore in the year-ago period.

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For the fourth quarter ended March 31, 2020, UCO Bank made a provisioning of Rs 1,199.82 crore for bad loans, down 46.50 per cent, compared to Rs 2,442.58 crore parked aside for the year-ago period. Provisions for non-performing assets declined sharply by 58.13 per cent to Rs 1,089.26 crore during the March quarter of FY20. The non-performing loan provisioning coverage ratio was 85.46 per cent as on 31 March 2020 as against 74.93 per cent in the year-ago period.

On asset quality front, gross non-performing assets (GNPAs) as a percentage of gross advances continued to remain at an elevated level of 16.77 per cent in FY20, better than 25 per cent in FY19. The percentage of net NPA stood at 5.45 per cent against 9.72 per cent last year.

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In absolute terms, the gross NPAs or bad loans of the bank were at Rs 19,281.95 crore as on March 31, 2020, compared to Rs 29,888.33 crore in the year-ago period.

The bank's Capital Adequacy Ratio stood at 11.7 per cent in Q4 FY20 from 10.7 per cent in Q4 FY19.

Boosted by strong Q4 earnings, shares of UCO Bank ended Friday's trade at Rs 16.14 apiece, up 15.53 per cent, as against previous closing price of Rs 13.97 on the Bombay Stock Exchange.