UCO Bank net Zooms 61.22%, but net NPA goes up
UCO Bank’s net profit has surged 61.22 per cent during 2006-07 to touch Rs 316 crore, compared to Rs 196 crore in 2005-06, reports Jaidev Majumdar.india Updated: May 01, 2007 00:02 IST
UCO Bank’s net profit has surged 61.22 per cent during 2006-07 to touch Rs 316 crore, compared to Rs 196 crore in 2005-06. The Kolkata-based bank has also raised its total business size by 21.62 per cent to Rs 1,12,331 crore during the same period.
UCO bank chairman and managing director V Sridar said on Monday that the bank is eyeing a total business of Rs 2,00,000 crore by March 31, 2010. During the current fiscal, the bank plans to increase its business by 19.6 per cent, with 17.37 per cent and 22.65 per cent growth in deposits and advances respectively. UCO bank’s deposits stood at Rs 64,860 crore while advances were at Rs 47,471 crore in 2006-07.
Sridar also said that during the current year, the bank will roll out a series of new initiatives including on-line share trading, besides enhancing remittance business and initiating utility bill payment systems and IT enabled systems like e-ticketing through ATMs. It will launch derivative products for corporates as well as set up a separate cell for introducing corporate advisory services such as loan syndication and forex operations.
Capital adequacy ratio of the bank stood at 11.56 per cent at the end of March 31, 2007.
While the bank is planning to bring 75 per cent of the branches under its core banking solution (CBS) by the year 2007-08, it has brought 182 branches under the CBS during the last fiscal. The bank’s overseas operations in Hong Kong, Singapore, Malaysia and China recorded a business growth of 88.68 per cent and touched Rs 8,974 crore from Rs 4,756 crore.
Steps to check small-ticket loan defaults
UCO Bank has decided to establish a centralized processing centre for disbursing small ticket loans, which is a major cause of worry for the bank having reported a slippage on small ticket loans alone to the tune of Rs 1,004 crore during 2006-07.
UCO will rope in credit rating agency Crisil to assist in this endeavour by setting benchmarks and also automate the system to a rule-based lending platform. The centre is likely to be set up within the next six months.
On the NPA recovery front, Sridar said that while gross NPA had reduced from 3.27 per cent to 3.17 per cent, net NPA had risen from 2.10 per cent to 2.14 per cent. Sridar said that the rise in net NPA was due to default in small ticket loans. He said that the target for the current year in terms of gross and net NPA was 2.79 per cent and 1.70 per cent respectively.
First Published: May 01, 2007 00:01 IST