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UCO Bank reported a 20.3% YoY decline in its net profit for the third quarter to Rs 401.67 crore ($54.1 million), despite an 80% increase from the second quarter’s Rs 223.48 crore ($30.1 million). The bank attributed this fluctuation to a decrease in operating margin to 16.74%.
The bank, however, reported a significant improvement in its asset quality as gross non-performing assets (NPAs) fell to 4.14% from last year’s 6.58%. Similarly, net NPAs dropped to 1.11% from 1.99%, indicating an enhanced focus on managing credit risk.
Total interest income for the quarter saw an impressive surge, jumping by 24.7% to Rs 5,218.82 crore ($703 million). Amid the ongoing COVID-19 pandemic, the bank has also maintained a contingency provision of Rs 530 crore ($71.4 million), demonstrating its preparedness for potential financial uncertainties.
Under the leadership of CEO Ashwani Kumar, UCO Bank has been expanding its international operations. The bank opened four Special Non-Resident Rupee Accounts (SRVA) with Russian banks and has received approval from the Reserve Bank of India (RBI) for eight more accounts – six in Russia and two in Belarus.
In addition to these developments, four more banks – two from Russia and two from other countries – have expressed interest in opening SRVA accounts with UCO Bank. Despite these new account openings, Kumar noted that transaction volumes have been small but are expected to increase as awareness grows about these services.
This expansion into international markets aligns with UCO Bank’s broader strategy of diversifying its operations and strengthening its global presence while managing domestic challenges effectively.
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