UCO Bank Q2FY'24: Bad Loan Recovery Improves via NCLT

Kolkata, Oct 20 (PTI) UCO Bank has recovered Rs 414 crore from 26 accounts through the NCLT mechanism during the second quarter of the current fiscal, an official said on Sunday.

Of the recovered amount, Rs 393 crore came from 14 accounts resolved, and Rs 21 crore from 12 under liquidation, he said.

"During the July-September quarter, Rs 414 crore was recovered from resolution and liquidation combined. Recovery through the resolution process during the period was Rs 393 crore, significantly higher than the year-ago figure of Rs 82 crore and the June quarter's Rs 34 crore," a senior bank official told PTI.

Recovery under the National Asset Reconstruction Company Ltd (NARCL) -- the government-backed bad bank -- during the quarter was negligible, with only one account worth Rs 4 crore resolved, he said.

As of September 30, 2024, UCO Bank had exposure to 238 accounts, referred to the Insolvency and Bankruptcy Code (IBC) process, totalling Rs 18,163 crore, the official said.

By the end of September 2024, the lender had identified six accounts under NARCL with a total exposure of Rs 878 crore.

The Kolkata-headquartered bank maintained a 100 per cent provision coverage ratio across stressed assets referred to NCLT and NARCL.

The bank's gross NPA (non-performing asset) ratio decreased to 3.18 per cent for the September 2024 quarter, down from 4.14 per cent a year ago, reflecting improved asset quality.

The net NPA ratio year-on-year was reduced by 38 basis points to 0.73 per cent during the quarter, the lender said.

Meanwhile, domestic advances grew significantly by 21.62 per cent year-on-year from Rs 1,42,953 crore in September 2023 to Rs 1,73,866 crore in September 2024.

The retail segment saw robust growth, particularly in home and vehicle loans, with advances rising 29.36 per cent year-on-year, the official said.

This growth was driven by an 18.98 per cent increase in home loans and a 38.66 per cent surge in vehicle advances.

UCO Bank had posted a 50 per cent jump in its net profit to Rs 603 crore for the second quarter of the current fiscal.

Business of the bank for the July-September quarter of the current fiscal stood at Rs 4,73,704 crore, showing an increase of 13.56 per cent year-on-year, with gross advances at Rs 1,97,927 crore, and deposits at Rs 2,75,777 crore.