UCO BANK My colleague Directors Shri J K Garg, Shri Charan Singh
Friends from the electronic and print media
Ladies and Gentlemen
Good Afternoon.
On behalf of the Board and employees of UCO Bank and on my behalf, I welcome you all to the declaration of Financial results of the Bank for the Quarter ending 30th Jun'2015.
Let me start with a quick overview of the operating environment.
Some Key indicators
The CPI-based inflation rose to a nine-month high of 5.40% in June, on the back of spike in food prices. It was 5.01% in May'2015, while it had stood at 6.77% in June' 2014.
RBI on its part kept the major policy rates unchanged in its latest bi- monthly monetary policy review on 4th Aug'2015.
For the April-June period, merchandise exports came in at Rs. 4.23 lac crore, while imports stood at Rs. 6.28 lac crore resulting in a trade deficit of Rs. 2.05 lac crore for the quarter.
Developments in the Banking Sector
Meanwhile, in the fortnight ended 24th July'2015, non-food credit disbursal of banks grew at 9.65% y-o-y to Rs.65.47 lakh crore and deposits grew 11.75% to reach Rs.88.83 lakh crore.
The credit growth remained muted not only due to very little incremental capital expenditure, but also because many companies opted for cheaper fund-raising options, like bonds. As per SEBI, funds raised through corporate bonds in Apr-Jun2015 quarter at Rs. 142,033 Cr. was 172% more than
1
that raised in the corresponding quarter last fiscal. In Apr'2015 alone Rs.
85,216.44 Cr. was raised through this route which was greater than the amount of Rs.52,311.73 raised in the entire 1st quarter of FY 2014-15.
With this introduction, let me now turn to our Bank's performance during
the Qtr ending Jun'2015.
UCO Bank performance
In the backdrop of prolonged economic slowdown and uneven economic recovery leading to slippages in asset health, Bank has consciously taken a decision to pursue selective growth. It is focusing only on low-risk assets and retail.
Total business
Total business as on 30th Jun'2015 stood at Rs. 357,345.17 cr. as compared to Rs. 348,914.19 cr. a year ago, exhibiting a growth of 2.42% Y-o-Y.
Advances
Bank's Advances at Rs.149,226.37 cr. as at the end of Jun'15 grew by 1.45
% YoY. With our sustained focus on Retail Business, loan growth for the bank was driven mainly by the retail segment, which grew by 15.65 % on a y-o-y basis as of June 30, 2015. The growth in our retail portfolio was on the back of 33.85 % growth in Home Loan. Our Agriculture business also grew by 11.32 %, while the SME portfolio increased by 15.54%.
Deposits
Meanwhile, Bank's Deposits of Rs. 208,118.80 cr. as at the end of Jun'15
grew by 3.12% from a year-ago figure of Rs. 201,813.66 cr.
CASA deposits as on Jun'15 stood at Rs. 59584.70 cr. which was 31.71% of domestic deposit. Here I would like to make a special mention of our core deposits which grew by 9.77 % YoY to reach a figure of Rs. 1,45,860
Cr.
Treasury & Other income
2
Through judicious utilization of market opportunities Bank continues to exhibit strong treasury gains. During the 1st quarter of FY'16 treasury recorded profit of Rs. 230 Cr. from sale of investment and exchange transactions, which was 72.93% more compared to Rs. 133 Cr. in the corresponding quarter last year.
Other income was Rs. 440 Cr. in Q1 of FY'16 compared to Rs. 322 Cr. in
Q1 of FY'15.
Income and Profits
For the Q1FY16, Bank's Operating Profit and Net Profit stood at
Rs.1161.46 Cr. and Rs. 256.70 Cr. respectively compared to Rs. 1202.05
Cr. and Rs. 521.40 Cr. respectively in the corresponding period last FY.
The drop in Net Profit can be attributed to 33% YoY rise in Provision and contingencies during the current quarter which reached Rs. 904.76 Cr.
Total income in Q1FY'16 stood at Rs. Rs. 5169.09 Cr. as against Rs.
5,395.17 Cr. in Q1FY'15.
Net Interest Income in Q1FY'16 was at Rs. 1370.64 Cr. as against Rs.
1,483.13 Cr. in the corresponding quarter of last FY.
Asset Health
Let me now turn to the issue of Asset Health.
The NPA additions in the quarter under review at Rs.1252.98 Cr. was 40% less compared to the preceding quarter. Some large borrowal accounts facing difficulties contributed to the fresh slippages, 44% of which were from restructured category. The maximum slippages were in Power, Textiles, Manufacturing and Real Estate industries.
There was Rs. 623.62 Cr. reduction in NPAs during the quarter. Bank has sold Rs. 115.56 Cr. NPAs to asset reconstruction companies during the quarter.
Next provisioning. Provisions for the 1st quarter were Rs. 904.76 Cr. compared to Rs. 680.65 Cr. in the corresponding quarter last fiscal, and Rs. 1,019 Cr. in the 4th quarter of FY'15. Year-on-year provisions were
3
higher in this quarter due to much higher provisioning for NPAs at Rs.
611.53 Cr. (Rs.19.55 Cr.) and Rs. 100 Cr. provisioning for Arrear Salary
(Rs. 45.00 Cr.).
As on 30th Jun'15 our GNPA ratio stood at 7.30% with Gross NPAs at Rs.
10894.41 Cr. while NNPA ratio stood at 4.53 % with Net NPAs at Rs.
6541.13 Cr. Our NPA Provision coverage ratio stood at 53.84% as on 30th
June 2015.
Other Ratios/Parameters
Moving on to cost, Bank continues to contain costs rigorously which led to Cost to income ratio in Q1FY16 coming down to 37.51, compared to
39.26 in the 4th quarter of fiscal 2015. For the 1st quarter, operating expenses increased by 7.63% on a y-o-y basis to Rs. 649 Cr. (Rs. 603 Cr).
The bank's capital adequacy ratio as per RBI's guidelines on Basel III norms, continues to remain strong. The bank's capital adequacy ratio as of June 30, 2015, was 11.71%.
Touch Points
As of June 30, 2015, the bank had a branch network of 3030 branches and 2147 ATMs. We shall continue to strengthen our alternate delivery channels for increasing the customer convenience.
Awards
UCOBANK has been awarded 3rd Prize in the All India Competition under Medium Banks category in recognition of its remarkable contribution to RSETI movement in the country for the year 2013-14 , on the auspicious occasion of RSETI Diwas on 15.07.2015.
In conclusion, I would like to state that we will continue to pursue profitable growth.
Thank you.
4
|
distributed by
|
