Kolkata, Nov 7 (IANS) Public sector lender UCO Bank Wednesday announced a 55 percent dip in its net profit to Rs.103.71 crore for the quarter ended Sep 30 from Rs.230.75 crore for the same period last year.
Higher provisioning for non-performing assets dragged down the net profit of the Kolkata-based bank during the second quarter of the current financial year.
UCO Bank chairman and managing director Arun Kaul said the bank set aside Rs.435 crore as provisioning towards non-performing assets during the period under review, as compared with Rs.244 crore during same period last year.
"We witnessed fresh slippages worth Rs.1,500 crore during the quarter of which Rs.820 crore came from one group alone," Kaul told reporters after the results.
He, however, refused to divulge details about the group.
Total income of the state-run lender has increased from Rs.3,730.79 crore for the second quarter this fiscal to Rs.4408.55 crore for the corresponding period last fiscal.
Percentage of gross non-performing assets to advances during the period increased to 4.88 percent (from 3.64 percent), while net non-performing assets soared to 2.94 percent (from 2.11 percent).
The increase in bad assets impacted the bank's profitability, dragging down the net interest margin to 2.24 percent (2.84 percent).
"Moving forward, our focus will be on arresting slippages and initiating recovery measures. If we can contain our NPAs (non-performing assets), then our margins should also improve," Kaul said.