Uco Bank Reports 23% Profit Increase in Q4 Amid Lower Provisions
Uco Bank Q4 profit jumps 23% on lower provisions; margins dip
The Economic TimesImage: The Economic Times
Uco Bank, a state-owned financial institution in India, reported a 23% increase in net profit for the fourth quarter, reaching ₹801 crore. This growth was attributed to lower provisions, despite a decline in operating profit and net interest margins. The bank also announced plans to raise ₹2,700 crore through share sales.
- 01Uco Bank's Q4 net profit rose by 23% to ₹801 crore.
- 02Operating profit decreased to ₹1,573 crore from ₹1,699 crore.
- 03Gross advances grew by 19.44% year-on-year to ₹2.63 lakh crore.
- 04The bank's gross non-performing assets (NPA) reduced to 2.17%.
- 05A dividend of 4.40% was proposed for FY26.
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Uco Bank reported a 23% increase in its net profit for the fourth quarter, amounting to ₹801 crore compared to ₹653 crore in the same period last year. This growth was primarily driven by lower provisions, although the bank's operating profit fell to ₹1,573 crore from ₹1,699 crore due to declines in both core and non-interest income. The net interest margin also dipped to 3% from 3.08% in the previous quarter. On a positive note, the bank's gross advances surged by 19.44% year-on-year to ₹2.63 lakh crore, while total deposits increased by 11.59% to ₹3.28 lakh crore. Furthermore, the bank's gross non-performing assets (NPA) improved, decreasing by 52 basis points to 2.17%, and net NPA reduced by 23 basis points to 0.27%. In a bid to enhance its capital base, the bank's board proposed a 4.40% dividend, equating to 44 paise per equity share for FY26, and approved plans to raise ₹2,700 crore through share sales and up to ₹5,000 crore via the issuance of Basel III compliant bonds.
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The increase in net profit and reduction in NPAs may enhance Uco Bank's lending capacity, potentially leading to better loan products for consumers and businesses. This could positively affect borrowers looking for loans.
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