State-owned UCO Bank on Friday posted an 80% jump in net profit to Rs 223 crore in the April-June quarter, mainly due to a decline in bad loans.
The Kolkata-based lender had posted a net profit of Rs 124 crore in the year-ago period.
The total income in the first quarter of the current fiscal rose to Rs 5,857 crore against Rs 3,797 crore, UCO Bank said in a regulatory filing.
The lender's interest income also increased to Rs 5,224 crore from Rs 3,851 crore in the same quarter a year ago.
On the asset quality side, the bank witnessed improvement with the gross non-performing assets easing to 4.48% of the gross advances by June 2023 from 7.42% a year ago.
The net NPA too declined to 1.18% against 2.49% in the same period of the previous year.
However, provisions for bad loans increased to Rs 389 crore compared to Rs 268 crore in the same quarter a year ago.
Provision Coverage Ratio of the bank increased to 94.88% as of June 2023 against 91.96% at the end of the first quarter of the previous financial year.
The capital adequacy ratio of the bank improved to 16.85% at the end of June compared to 14.13% a year ago.
During the quarter, the bank made a provision of Rs 90 crore on an ad hoc basis for arrears pursuant to the proposed 12th bipartite settlement due from Nov. 1, 2022.
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