The Hindu : UCO Bank does well

Online edition of India's National Newspaper
Saturday, Jun 01, 2002

Business

Business

UCO Bank does well

By Our Corporate Reporter

CHENNAI, MAY 31. UCO Bank has been reporting net profits in the last three consecutive years and in the year ended March 31, 2002, the performance was remarkable with the net profit at Rs. 164 crores against Rs. 33 crores in the previous year. The growth in net profit would have been still higher but for the additional provisions of Rs. 145 crores made by the bank towards voluntary retirement scheme and salary arrears, according to V.P. Shetty, chairman and managing director of the bank.

Addressing presspersons here today, Mr. Shetty said the bank could make a windfall from treasury operations with an income of Rs. 346 crores. In the current year also the treasury operations were profitable so far, Mr. Shetty said.

The market share of the bank in the total business had been growing up during the last three years and in the year ended March 31, 2002 it was 2.03 per cent, he said. The bank had been making consistent progress in deposits, advances and investments resulting in a business growth of 25 per cent with the total business crossing the Rs. 40,000 crore mark during the year under reference.

Mr. Shetty said the gross NPA (non-performing assets) had been brought down to 9.46 per cent from 11.71 per cent in the previous year and the net NPA had improved to 5.45 per cent from 6.35 per cent a year ago.

The cost of deposits had been brought down to 6.74 per cent from 7.35 per cent due to a growth in low cost deposits to 18 per cent from 14.34 per cent in the previous year, Mr. Shetty said.

In its diamond jubilee year the bank has drawn up reorganisation plans with focus on rationalisation of branches and man power with special emphasis on technology upgradation.

Mr. Shetty said the bank was planning to come out with an initial public offer. The bank has an accumulated loss of Rs. 1,750 crores. After adjusting this against capital with the permission of the Government the bank might come out with an initial public offer. This restructuring would happen in July and the target year for the IPO might be 2003-04, he said.

The Chennai region, comprising 70 branches, recorded an allround growth in all the performing areas, according to M. Ramani, Deputy General Manager of the bank.

The region, with deposits of Rs, 1,054 crores and advances of Rs. 746 crores in 2001-02, had planned to reach 1,260 crores and Rs. 847 crores respectively during the current year, he said.

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