Air India settlement pumps up UCO bank's profit in last quarter shares UCO Bank managing director and chief executive officer Soma Sankara Prasad
Air India settlement pumps up UCO bank's profit in last quarter
Soma Sankara Prasad, managing director and chief executive officer, UCO bank
In a press conference on Tuesday, UCO Bank managing director and chief executive officer Soma Sankara Prasad shared that payment of interest from Air India jumped the profit up of the bank substantially in the last quarter.
Further, reporting the profit of the bank, Prasad said, “UCO bank has reported more than two-fold jump in profit at Rs 653 crore for the quarter ended December 2022, driven by increase in interest income and decline in bad loans.”
A major portion of this profit comes from Air India. “We had a pending interest from Air India for a very long time and the company settled the interest in accumulation amounting upto Rs 200 crore,” Prasad said.
This amplified the profit percentage. “Removing the settlement sum from Air India, UCO bank’s growth rate is still 25 per cent, so the bank is in a good position and can focus on expansion,” Prasad said.
Sharing the figures, he added, “On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 5.63 per cent of gross advances as compared to 8 per cent at the end of the third quarter of 2021-22.”
Prasad further quoted the need for banks to outgrow each-other for success.
With focus on strengthening the bank fundamentally, improving profitability and growing consistently across all key parameters, Prasad quoted the importance of digitalisation and seamless transactions.
The bank’s net profit stood at Rs 310 crore in the same quarter of the preceding financial year.
“Total income increased to Rs 5,451 crore in the quarter from Rs 4,638 crore in the year-ago period," Prasad announced.
At the same time, interest income rose to Rs 4,627 crore as compared to Rs 3,919 crore in the same quarter a year ago.
In a press conference on Tuesday, UCO Bank managing director and chief executive officer Soma Sankara Prasad shared that payment of interest from Air India jumped the profit up of the bank substantially in the last quarter.
Further, reporting the profit of the bank, Prasad said, “UCO bank has reported more than two-fold jump in profit at Rs 653 crore for the quarter ended December 2022, driven by increase in interest income and decline in bad loans.”
A major portion of this profit comes from Air India. “We had a pending interest from Air India for a very long time and the company settled the interest in accumulation amounting upto Rs 200 crore,” Prasad said.
This amplified the profit percentage. “Removing the settlement sum from Air India, UCO bank’s growth rate is still 25 per cent, so the bank is in a good position and can focus on expansion,” Prasad said.
Sharing the figures, he added, “On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 5.63 per cent of gross advances as compared to 8 per cent at the end of the third quarter of 2021-22.”
Prasad further quoted the need for banks to outgrow each-other for success.
With focus on strengthening the bank fundamentally, improving profitability and growing consistently across all key parameters, Prasad quoted the importance of digitalisation and seamless transactions.
The bank’s net profit stood at Rs 310 crore in the same quarter of the preceding financial year.
“Total income increased to Rs 5,451 crore in the quarter from Rs 4,638 crore in the year-ago period," Prasad announced.
At the same time, interest income rose to Rs 4,627 crore as compared to Rs 3,919 crore in the same quarter a year ago.