UCO Bank may cut rates by 50 basis points | india | Hindustan Times
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UCO Bank may cut rates by 50 basis points

State-run UCO Bank may cut its prime lending rate (PLR) by 50 basis points each in the next two quarters, a top official said in Kolkata on Thursday.

india Updated: Jul 30, 2009 22:42 IST

State-run UCO Bank may cut its prime lending rate (PLR) by 50 basis points each in the next two quarters, a top official said in Kolkata on Thursday.

"During the next two quarters, we would be shedding most of our high cost deposits which would bring down our fund costs and so we might bring down our lending rates also," chairman and managing director of the bank SK Goel told reporters.

UCO's current PLR is 12.25 per cent.

He expects the net interest margin (NIM) of the bank to go up to 2.15 per cent by the end of the current financial year due to expected fall in fund costs.

During April-June, UCO's NIM dropped to 1.74 per cent from 2.12 per cent year ago.

The bank's net profit has gone up 36 percent to Rs.178.85 crore for the quarter ended June 30, as compared to Rs 133.44 crore for the first quarter of the previous year.

"The growth in profit was due to significant growth in treasury profits to Rs 85 crore in the quarter from Rs 30.5 crore a year ago and a 55 per cent growth in our fee-based income at Rs 252 crore," Goel said.