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UCO Bank loss widens to Rs 1016.43 cr in Q3

09 February 2018

The total loan loss provision at the bank stood at Rs 17,760 crore for the December quarter against Rs 9,662 crore in the year-ago period.

It hinted at more pain in the next quarter as the impaired assets problem and lack of resolution continues, but said it hopes for a better fiscal year 2018-19. The gross NPA ratio crossed double digits at 10.35 per cent from 7.23 per cent a year ago.

The State Bank of India on Friday posted a massive net loss of Rs 2,416 crore for the third quarter of 2017-'18.

In absolute terms, SBI reported a seven percent increase in gross NPAs to Rs 1, 99,141.34 crore and 4.6 percent rise in net NPAs to Rs 1, 02,370.12 crore.

Higher provisions for bad assets ate into the bank's bottomline and the rise in net loss during the December quarter was also due to a 58.5 per cent fall in operating profit over past year.

Bad loans at Indian banks have almost doubled in the past four years as an economic slowdown took its toll on the ability of companies to repay debt, exacerbated in the case of some banks which analysts said had expanded lending too fast.

Provisions for bad loans rose about 93 percent to 31.55 billion rupees.

The bank's stock closed 0.31 per cent down at Rs 65.20 on BSE.

Total provisioning and contingencies for the quarter were raised to Rs 2,089.99 crore, from Rs 784.74 crore.

Domestic banks, who have seen higher levels of bad loans over the past several quarters, have to make provisions against such dud assets.

Kumar said the bank has signed an agreement with the government to raise Rs 20,000 crore in core equity from non-promoter investors, beyond the Rs 8,800 crore it expects through a preference issue to the government soon.

Kumar made it clear that the new infusion is not for covering loan losses through provisions, but would serve as growth capital.

The third quarter saw the SBI's core, or net interest income, rising around 5.17 per cent to Rs 18,688 crore from Rs 17,769 crore in the same period a year ago.

UCO Bank loss widens to Rs 1016.43 cr in Q3