UCO, Allahabad Bank report losses for FY18

Two city-based public sector banks — UCO Bank and Allahabad Bank — recorded losses for the financial year 2017-18.

The annual loss at Allahabad Bank widened to ₹4,574.2 crores from ₹279 crores in 2016-17. The bank reported as many as 43 cases of fraud during the year involving a total of ₹1,525.4 crores. The bank recovered ₹2.8 crores and provisioned for the balance.

Total income shrunk to ₹19,487.5 crores from ₹20,578.9 crores mainly on account of lower interest earnings and income from investments.

The bank showed a lower operating profit during the year at ₹3,579.3 crores. Capital adequacy ratio stood at 8.8 % against 11.6%.

UCO Bank

UCO Bank closed the year with a ₹4,436.4 crores net loss against a profit of ₹1,850.7 crores in 2016-17. Total income dropped from ₹18,440.3 crores in 2016-17 to ₹15,141.1 crores due to lower interest income and other income.

Provisioning stood at ₹7,343.4 crores against ₹4,414.7 crores.

Most of the losses were on account of corporate and retail banking operations.

The bank’s board of directors approved a proposal to skip dividend.