The state-run bank had posted a net loss of Rs 960.17 crore for the third quarter last fiscal.

Public sector lender Uco Bank on Monday said its profitability may get impacted during the first half of this fiscal due to lack of economic activities during the lockdown, imposed to control the spread of the Covid-19 pandemic.

The Kolkata-based lender, which is under the prompt corrective action (PCA) framework of the Reserve Bank of India, believes its profitability is likely to improve during second half of the current financial year subject to restoration of normal economic activities.

“There may be impact on revenue of the bank during 1st and 2nd quarter of the current financial year due to lack of economic activity during the period of lockdown. With the measures being taken by government of India and various state governments, normalcy may restore by 3rd and 4th quarter of current financial year,” Uco Bank said in a disclosure to the stock exchanges.

The bank was earlier aiming to back in the black and consequently come out of the PCA framework by the fourth quarter of the last fiscal. It has not yet declared its January-March quarter results. The state-run bank had posted a net loss of Rs 960.17 crore for the third quarter last fiscal.

Gross NPAs had stood at Rs 22,139.65 crore, while gross NPA ratio was at 19.45%.

The bank, in its stock exchange filing on Monday, said outbreak of Covid-19 pandemic had impacted credit and recovery segments. “Though there was an impact on recovery, loan default risk has been largely minimized on account of grant of moratorium on repayment of loans by RBI,” it said. Demands for banking products may improve during second half of the current financial year subject to restoration of normal economic activity, it added. Uco Bank’s scrip rose 7.37% to end at `13.99 on BSE on Monday.