UCO Bank - First quarter, second quarter, Third Quarter and annual results

Financial Results 2011

10, B.T.M.Sarani, Kolkata - 700 001

Audited Financial Results for the Year Ended 31st March, 2011

(Rs. in lakhs)
SL No.	Particulars	Quarter Ended		Year Ended
		31.03.2011	31.03.2010	31.03.2011	31.03.2010
		(Audited)	(Audited)	(Audited)	(Audited)
1	Interest Earned (a)+(b)+(c)+(d)	306849	243591	1137080	952632
	(a) Interest/discount on advances / bills	229755	175134	850539	710685
	(b) Income on investments	72757	60794	270013	218898
	(c) Interest on balances with R.B.I & other inter-bank funds	1951	5013	12424	19887
	(d) Others	2386	2650	4104	3162
2	Other Income	29206	25409	92541	96593
3	Total Income (1+2)	336055	269000	1229621	1049225
4	Interest Expended	222421	169198	752589	720220
5	Operating Expenses (a) + (b)	55645	43244	207536	158442
	(a) Employees Cost	38119	28778	148012	105762
	(b) Other Operating Expenses	17526	14466	59524	52680
6	Total Expenditure (4+5) (excluding Provisions and Contingencies)	278066	212442	960125	878662
7	Operating Profit (Before Provisions and Contingencies) (3-6)	57989	56558	269496	170563
8	Provisions (other than tax) and Contingencies	34077	17685	175040	65647
	...of which provision for NPA	9364	20369	118065	35380
9	Exceptional Items	0	0	0	0
10	Profit(+)/Loss(-) from Ordinary Activities before tax (7-8-9)	23912	38873	94456	104916
11	Tax Expenses	1322	893	3802	3698
12	Net Profit(+)/Loss(-) from Ordinary Activities after tax (10-11)	22590	37980	90654	101218
13	Extraordinary items	0	0	0	0
14	Net Profit/(Loss) for the period (12-13)	22590	37980	90654	101218
15	Paid-up Equity Share Capital (Face Value Rs.10/- each)	62751.75	54936.00	62751.75	54936.00
16	Reserves excluding Revaluation Reserves (As per Balance Sheet of previous accounting year)	451793	306212	451793	306212
17	Analytical Ratios
	(i) Percentage of shares held by Govt. of India	68.13%	63.59%	68.13%	63.59%
	(ii) Capital Adequacy Ratio: Basel-I	11.87%	11.35%	11.87%	11.35%
	Basel-II	13.71%	13.21%	13.71%	13.21%
	(iii) Earning Per Share (EPS) (in Rs.) (Not Annualised)
	Basic and Diluted EPS before and after Extraordinary items for the period, for the year to date and for the previous year.	3.48	6.68	14.29	17.47
	(iv) NPA Ratios
	a) Gross NPA	315036	166643	315036	166643
	b) Net NPA	182455	96628	182455	96628
	c) % of Gross NPA	0.0313	1.99%	3.13%	1.99%
	d) % of Net NPA	0.0184	1.17%	1.84%	1.17%
	e) Return on Assets (Annualised) (%)	0.62%	1.22%	0.66%	0.87%
18	Public Shareholding
	- No. of Shares (in lakh)	2000.00	2000.00	2000.00	2000.00
	- Percentage of Shareholding	31.87%	36.41%	31.87%	36.41%
19	Promoters and Promoter Group Shareholding
	a) Pledged/Encumbered
	Number of Shares	Nil
	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)
	Percentage of Shares (as a % of the total share capital of the Company)
	b) Non-Encumbered
	Number of Shares (in lakh)	4275.17	3493.60	4275.17	3493.60
	Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%	100.00%	100.00%
	Percentage of Shares (as a % of the total share capital of the Company)	68.13%	63.59%	68.13%	63.59%

SEGMENTWISE RESULT AS ON 31ST MARCH, 2011
PART : A BUSINESS SEGMENT
Sl. No.	Particulars	Quarter Ended		Year Ended
		31.03.2011	31.03.2010	31.03.2011	31.03.2010
		(Audited)	(Audited)	(Audited)	(Audited)
1	Segment Revenue
	i) Treasury Operations	81360	70576	306079	271084
	ii) Corporate/Wholesale Banking	216202	146234	710316	490588
	iii) Retail Banking	37612	50071	207961	281274
	iv) Other Banking Operations	881	2119	5265	6279
	Total Revenue	336055	269000	1229621	1049225
2	Segment Results
	i) Treasury Operations	10238	(10232)	33422	(3471)
	ii) Corporate/Wholesale Banking	9183	21035	37957	54514
	iii) Retail Banking	3610	25951	17812	47594
	iv) Other Banking Operations	881	2119	5265	6279
	Profit Before Tax	23912	38873	94456	104916
	Provision for Tax	1322	893	3802	3698
	Net Profit	22590	37980	90654	101218
3	Segment Assets
	i) Treasury Operations	6138733	5270404	6138733	5270404
	ii) Corporate/Wholesale Banking	7951598	5514327	7951598	5514327
	iii) Retail Banking	2249514	2947218	2249514	2947218
	iv) Other Banking Operations	0	0	0	0
	Total Assets	16339845	13731949	16339845	13731949

4	Segment Liabilities
	i) Treasury Operations	4901918	4674264	4901918	4674264
	ii) Corporate/Wholesale Banking	8915675	5902827	8915675	5902827
	iii) Retail Banking	2522253	3154858	2522253	3154858
	iv) Other Banking Operations	0	0	0	0
	Total Liabilities	16339845	13731949	16339845	13731949

PART : B GEOGRAPHIC SEGMENT
		Quarter Ended		Year Ended
	Particulars	31.03.2011	31.03.2010	31.03.2011	31.03.2010
		(Audited)	(Audited)	(Audited)	(Audited)
	Domestic
	i) Revenue	329540	263293	1204233	1026458
	ii) Assets	15326846	12950493	15326846	12950493
	International
	i) Revenue	6515	5707	25388	22767
	ii) Assets	1012999	781456	1012999	781456
	Global
	i) Revenue	336055	269000	1229621	1049225
	ii) Assets	16339845	13731949	16339845	13731949

STATEMENT OF ASSETS AND LIABILITIES AS ON 31.03.2011

		(Rs. in Lakh)
Particulars	As on 31.03.2011	As on 31.03.2010
	As on 31.03.2011	As on 31.03.2010
	(Audited)	(Audited)
Capital & Liabilities
Capital	2450 52	1699 36
Reserves and Surplus	4968 71	3511 18
Deposits	145277 60	122415 55
Borrowings	5474 77	6263 84
Other Liabilities and Provisions	5226 85	3429 56
Total	163398 45	137319 49
Assets
Cash and Balance with RBI	10404 03	7242 73
Balance with Banks and Money at call and Short Notice	6576 41	861 60
Investments	42927 28	43521 43
Advances	99070 81	82504 53
Fixed Assets	738 87	710 04
Other Assets	3681 05	2479 16
Total	163398 45	137319 49

NOTES

The financial results for the year ended 31.03.2011 have been audited by Statutory Central Auditors and approved by the Board of Directors at the meeting held on 29.04.2011.
The working results for the quarter/year ended 31.03.2011 have been arrived at after considering the provision for non-performing assets, standard assets, diminution in fair value and investment depreciation on the basis of prudential norms issued by the Reserve Bank of India (RBI). In respect of Income Tax, Depreciation on Fixed Assets, etc., provision has been made on estimated basis.
In terms of the Revised Accounting Standard (AS) -15 issued by the Institute of Chartered Accountants of India (ICAI) provision has been made for Employee Benefits. An amount of Rs.88.68 crores (Rs.88.68 crores) has been charged to Profit & Loss Account towards amortisation of the increase in transitional liability. The un-amortised portion of such liability is Rs.88.69 crore (Rs.177.37 crore).
As per the guidelines issued by Reserve Bank of India, the additional liability of Rs.507.84 crore (Rs. Nil) for reopening of pension option for such of its employees who had not opted for the pension scheme earlier and the additional fund requirement of Rs.292.51 crore (Rs.Nil) for enhancement of the limit of gratuity payable pursuant to the amendment of the Payment of Gratuity Act, 1972, i.e. Rs.800.35 crore (Rs.Nil) has been amortised over a period of five years from 2010-11. Accordingly, Rs.160.07 crore (Rs.Nil) has been charged this year to the Profit and Loss Account and the balance amount of Rs.640.28 crore (Rs.Nil), which does not include any liability relating to the retired / separated/ employees, has been carried forward.
Further an amount of Rs.461.84 crore (Rs.265.06 crore), which includes full liability for the retired / separated employees towards second option for pension and liability for other employee benefits, has been charged to Profit Loss Account towards current year's liability.
The Bank has recognized, MAT Credit to the extent of Rs.286.10 crore (Rs.160.64 crore) for year ended 31.03.2011 which is treated as an Asset.
The Observation of Auditors:
Statutory Auditors while reviewing unaudited financial results for the quarter ended 31.12.2010 made the following material observation:

Bank has classified investment in Venture Capital Fund Unit and Mutual Fund Unit as "shares" instead of "Other category", which is not in accordance with the classification as per the third schedule of the Banking Regulation Act and RBI-Prudential Norms for Classification, Valuation and Operations of Investment portfolio by banks. As a result of such classification, the Bank has made a short provision of Rs.56.78 crore in the depreciation in the value of investments in shares category.

The consequential effect of non provisioning of depreciation of Rs.56.78 crore, would decrease the net profit by Rs.56.78 crore and consequently Net Profit would be Rs.244.46 crore instead of Rs.301.24 crore as reported in Financial result for three months period ended 31st December, 2010 and Rs.623.86 crore instead of Rs.68064 lacs for the nine months ended on that date and its consequential effect on Segment Results pertaining to Treasury operations.

Our Reply

As per the clarification received from Reserve Bank of India during the current quarter, Bank has categorized the above investment under "Other Category" and depreciation has been charged. Accordingly, the net profit for the quarter/year ended 31.03.2011 has been correctly stated.
The provision coverage Ratio of the Bank with reference to Gross NPA position as on 30.09.2010 is 70%. As per RBI Circular No. DBOD.No.BPBC.87/21.04.048/2010-11 dated 21.04.2011 an amount of Rs.210.32 Crore has been kept under an account styled as counter cyclical provisioning buffer representing a surplus of provision under PCR vis a vis as required under prudential norms. The provision coverage as on 31.03.2011 works out to 51.60%.
During the year bank allotted 7, 81, 57,479 equity shares of Rs.10/- each at an issue price of Rs.120.27 to the Government of India, on preferential basis, with the approval of shareholders on complying with SEBI(Issue of Capital & Disclosure Requirements), 2009.
The Board of Directors of the Bank recommended a dividend @ Rs.3.00 per share.
Number of Investor Complaints:- (i) Outstanding at the beginning of the quarter - 01 (ii) Received during the quarter - 500 (iii) Disposed of during the quarter - 500 and Outstanding at the end of the quarter - 01.
Figures of the previous periods have been regrouped / reclassified wherever necessary.



(N. R. Badrinarayanan) Executive Director	(Ajai Kumar) Executive Director	(Arun Kaul) Chairman & Managing Director