State-owned Uco Bank reported nearly five-fold jump in net profit at Rs 80 crore for the March quarter largely riding on treasury gains. Net profit was Rs 17 crore in the year ago period.
The bank also made Rs 167 crore net profit for the full financial year after continuous loss in the previous five financial years.
Operating profit grew 26% at Rs 1533 crore as against Rs 1217 crore over the same period. Its net interest income rose 12.6% at Rs 1413 crore against Rs 1255 crore while other income including earnings from treasury rose 78% at Rs 1370 crore from Rs 769 crore over the same period.
The bank's board approved a plan to raise up to Rs 3,000 crore by selling shares to help the lender create a capital buffer as suggested by the Reserve Bank of India to ward off the pandemic-led stress. Its capital adequacy ratio stood at 13.74% with core capital at 11.14% at the end of March.
Uco, which is 94.4% owned by the government, said that it would contemplate a follow-on public offer (FPO), qualified institutional placement or preferential issue for capital raising.
The bank's advances grew by 3% to Rs Rs 1.18 lakh crore at the end of March. Gross non-performing assets improved to 9.59% from 16.77% a year back with net NPA falling to 3.94% from 5.45%. The provision coverage ratio rose to 88.4% from 85.5% earlier
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