State-owned UCO Bank on Friday reported a net loss of Rs 6.34 billion for the first quarter ended June 2018.
This first quarter loss, however, has narrowed both on annual and sequential basis. During April-June period of 2017-18, its net loss stood at Rs 6.63 billion. While in the March quarter of FY2017-18, loss was Rs 21.34 billion.
However, total income in April-June 2018 increased to Rs 43.60 billion from Rs 42.37 billion in the same period a year ago, the bank said in a regulatory filing.
Bank's asset quality worsened with the gross non-performing assets (NPAs) hitting 25.71 per cent of gross advances as on June 30, 2018 as against 19.87 per cent by end-June 2017.
In absolute value, the gross bad loans or NPAs stood at Rs 298 billion by the end of the first quarter of this fiscal, up from Rs 250.5 billion.
Net NPAs were 12.74 per cent (Rs 125.58 billion) as against 10.63 per cent (Rs 120.10 billion).
Thus the provisions for bad loans were raised substantially to Rs 20.38 billion for the June quarter of FY'19 from Rs 12.04 billion a year ago.
UCO Bank said provision coverage ratio for non-performing loans is 65.15 per cent.
The bank said it was required to make additional provisions with respect to accounts under provisions of Insolvency and Bankruptcy Code.
"Accordingly, the bank has made additional provision of Rs 6.27 billion in respect of all NCLT admitted borrower accounts," UCO Bank said.
Stock of the bank closed 3.23 per cent down at Rs 19.45 on BSE.