UCO Bank urges RBI to lift PCA, shares jump 6%

New Delhi: Shares of gained as much as 6 per cent during the early trade on Tuesday as the PSU lender has again urged the Reserve Bank of India to consider taking it out of the prompt corrective action (PCA) framework.

The Kolkata based lender has requested the central bank to reconsider taking it out from the PCA after posting full year profit for the last fiscal, its MD & CEO AK Goel said.

Shares of UCO Bank surged 6 per cent to Rs 14.41 on Tuesday, but gave up some gains to trade at Rs 13.97 at 10.55 am. BSE Sensex was trading at 52,227.80, 100.71 point or 0.19 per cent lower at the same time. The counter closed at Rs 13.59 on Monday.
The lender had earlier approached the central bank on lifting the restrictions after it had posted a net profit in the March 2021 quarter and complete financial year ended on March 31, 2021.

In Q4 of FY21, too, UCO Bank posted a profit of Rs 80 crore. On a full-year basis, its net profit stood at Rs 167 crore. Shares of UCO Bank have gained 24 per cent in the last one week.

Under PCA, the RBI imposes certain business restrictions on banks with weak financial metrics. The nature and degree of curbs are threshold-based and depend on the financial profile of each individual bank. UCO Bank has been under PCA since May 2017.