UCO Bank on Thursday announced a net loss of nearly Rs 601 crore in the quarter ended June 30, 2019 (Q1FY20), against a net loss of about Rs 634 crore in the same period of the last fiscal.
However, the bank posted an operating profit of about Rs 1,201 crore in the last quarter, which was highest in the last 14 quarters, said A K Goel, MD and CEO of UCO Bank.
Ageing provisions for non-performing assets (NPAs) led to high net loss in the last quarter, said Goel. The net non performing assets (NPA) of the bank as a percentage of total lending stood at 8.98 per cent in the last quarter, against 9.72 per cent in Q4FY19 and 12.74 per cent in the same period last year.
The gross NPA of the bank in the last quarter stood at 24.85 per cent, against 25 per cent in Q4FY19 and 25.71 per cent in the same period last year.
The bank has set a target of recovery of around Rs 2,000 crore every quarter, said Goel. In the last quarter, the bank managed to make a recovery of Rs 824 crore, while the slippages were around Rs 1,233 crore.
The total provisions of the bank (other than current tax) and contingencies stood at about Rs 1,803 crore in Q1FY20, against Rs 1,781 crore in the same period of the last financial year. The net interest income of the bank for Q1FY20 stood at about Rs 1,335 crore.
Seeks capital from LIC and govt
UCO Bank has assessed a total capital requirement of around Rs 4,500 crore. The bank has written to LIC for fund infusion and will also seek capital from government, said Goel.
At present, LIC holds about 4 per cent stake in the bank, and the holding can go up to 15 per cent.
The bank raised Rs 500 crore as tier II capital from LIC in the last quarter. This apart, the bank raised Rs 266 crore through Employee Stock Purchase Option (ESPS).
"The bank will explore all options for raising capital, including seeking it from government, LIC, ESPS and qualified institutional placement (QIP)," said Goel.
The ALCO of the bank recently decided to raise the MCLR by 5 basis points to 8.60 per cent in the one year tenure bracket, said Goel. The bank’s total capital requirement this year is about Rs 4,500 crore this financial year, according to Goel.