In a significant financial development, UCO Bank recently announced its quarterly results, garnering attention from investors and financial experts alike. The bank’s stellar performance in the second quarter has taken the market by storm. In this article, we will delve into the details of UCO Bank’s Q2 results and explore the factors that contributed to its impressive growth.
UCO Bank’s Q2 performance has left investors elated as the bank reported an 80.80% YoY increase in net profit, reaching a staggering Rs 223 crore for the June quarter. This remarkable growth comes in contrast to the Rs 124 crore figure from the same period last year.
A key factor behind UCO Bank’s success is the significant rise in its Net Interest Income (NII). The NII saw a substantial YoY growth of 21.78%, soaring to Rs 2,009 crore from Rs 1,650 crore during the corresponding quarter in the previous year.
UCO Bank’s net interest margin has been a critical metric in evaluating its financial health. The bank saw an improvement of 12 basis points in its NIM, which rose to 2.86% during the quarter. This is a commendable leap from the 2.74% NIM reported in the year-ago quarter.
One area where UCO Bank demonstrated significant progress is in managing its Non-Performing Assets (NPAs). The gross NPA as a percentage of advances decreased to 4.48% during this quarter, compared to 4.78% in the previous March quarter and 7.42% in the year-ago quarter. In value terms, gross NPAs stood at Rs 7,355 crore, significantly down from Rs 9,740 crore YoY.
The slippage ratio and credit cost are crucial indicators of a bank’s asset quality and provisioning. UCO Bank’s slippage ratio for the quarter stood at 1.39%, a slight increase from 1.32% in the March quarter but a notable improvement from 1.86% in the year-ago quarter. The credit cost was reported at 0.97%, showing better performance than the 1.07% in the previous quarter and 0.82% in the same quarter last year.
UCO Bank’s advances grew by an impressive 25.07% YoY, reaching Rs 1,64,278 crore. Moreover, the bank’s deposits also witnessed significant growth, rising by 10.81% YoY to Rs 2,49,694 crore during the quarter.
UCO Bank’s stellar performance in the second quarter showcases its dedication to growth and financial stability. With a remarkable increase in net profit and NII, coupled with a reduction in NPAs, the bank is on a positive trajectory. These results have undoubtedly positioned UCO Bank as a leading player in the financial sector.