PRESS RELEASES 2006

Performance Highlights for the Half Year Ended 30th September 2006

30^th October, 2006

Ladies and Gentlemen,
Good afternoon and a very warm welcome to the Press Meet.

I am pleased to inform all of you that the Bank has achieved good performance, in terms of its Financial Results for the half-year ended September, 2006, in particular in the second quarter of the current fiscal, and also taken up several major initiatives in the second quarter. Let me share the business achievements of the Bank for the half-year ended September, 2006 in the first place followed by the major initiatives taken by the Bank during the second quarter and also the Future Plans of the Bank.

Business

As at the end of September, 2006 our Bank has achieved a total business level of Rs. 97,564 crore as against Rs. 80,960 crore as on 30^th September 2005 recording a year-on-year growth of 20.51%.

Total Deposits of the Bank increased from Rs. 49,816 crore to Rs. 56,800 crore registering a growth of 14.02% year-on-year.

The growth rate in Advances is robust at 30.89%. Advances increased from Rs. 31,144 crore as on 30.09.2005 to Rs. 40,764 crore as on 30.09.2006.

The Operating Profit of the Bank for the half year ended September 2006 has recorded a jump of 22.37% to Rs. 454 crore from Rs. 371crore in the corresponding previous period in spite of reduction in profit on sale of investment to the extent of Rs.38 crore. The Operating Profit (net of Treasury Income) during the Half-year ended September, 2006 was higher by 38.01% at Rs.443 crore in comparison to Rs.322 crore during the corresponding half-year of the previous year.

The Operating Profit (Net of Treasury Income) was higher in the second quarter of the current fiscal at Rs.231 crore in comparison to Rs.156 crore in the second quarter of the last year, thereby showing a year-on-year growth of 48.08%.

Net profit of the Bank rose by 13.29% to Rs. 162 crore from Rs. 143 crore during the first half of the last year. In the second quarter of the current fiscal, the Net Profit of the Bank stood at Rs.100 crore in comparison to Rs.98 crore in the corresponding quarter of the previous year.

Total income recorded a year-on-year growth of 22.15% during the half year ended September 2006 in comparison to half year ended September 2005 and grew to Rs. 2746 crore from 2248 crore. The Bank’s total income in the second quarter of the current fiscal was higher by 21.13% at R.1410 crores in comparison to Rs.1164 crores in the corresponding quarter of the last year.

The Bank’s interest income posted a Y-O-Y growth of 23.44% to Rs. 2527 crore during the half-year ended September, 2006 from Rs. 2047 crore for the half-year ended September, 2005. Interest income from advances registered an increase of Rs. 432 crore with a higher growth of 35.64% during the same period.

Interest Income in the second quarter of the current fiscal was higher at Rs.1304 crore as against Rs.1046 crore in the corresponding quarter of the previous year showing a Y-O-Y growth of 24.67%. Income from Advances and Investments both showed better performance in the second quarter of the current fiscal in comparison to second quarter of the corresponding period.

Non Interest Income

Non Interest Income (net of treasury income) increased by Rs. 56 crore, the growth rate being 36.84%. In the second quarter of the current fiscal, Non-Interest Income (net of Treasury Income) showed a higher growth by 37.65% in comparison to corresponding quarter of the last fiscal.

The Gross NPAs and Net NPAs stood at Rs. 1369 crore and Rs. 814 crore as of the end of September 2006 respectively. The Gross NPA Ratio declined to 3.36% as on 30.09.206 as against 4.23% as on 30.09.2005. The Net NPA Ratio has also come down to 2.02% as on 30.09.2006 from 2.62% a year ago.

NPA Recovery was higher at the end of September, 2006 at Rs.204 crore in comparison to Rs.186 crore as at the end of September, 2005. Recovery in written-off accounts has showed a higher performance at Rs.33.80 crore as of September, 2006 in comparison to Rs.15.63 crore as of September, 2005.

The Capital Adequacy Ratio improved to 12.89% compared to 10.42% a year ago and is well above the minimum required level of 9%.

The Business Per Employee of the Bank improved to Rs.3.90 crore as at the end of September 2006 from Rs.3.36 crore as at the end of September, 2005.

The Earning Per Share improved to Rs.4.05 as at the end of September, 2006 from Rs.2.46 as at the end of March, 2006.

During the second quarter of the current financial year, the Bank has taken several new initiatives - technologically as well as other business initiatives which are as under :

Technological Initiatives

Core Banking Solution which was launched by the bank during the first quarter of the current financial year 2006-07 at six branches had become operational in 33 more branches taking the total no of CBS branches to 39 . The bank has targeted to roll out CBS facility in a total of 150 branches by 31.03.2007.

Internet banking Soft launched on 18.09.06.

New Tierised Current and Savings account product introduced in Sept-06. The customers maintaining certain average balance in their accounts will be provided with a host of concessional and privileged services.

‘Any where Branch Banking and Multicity Cheque’ facilities made available at select branches.

Performance based Initiatives

A new deposit scheme titled ‘UCO Bank Tax Saver Scheme-2006’ introduced by the bank w.e.f.01.09.06 for the benefit of the Bank’s customers who are assesses of Income Tax.

Retail and Small Enterprise Sales Force teams constituting of bank’s own staff members became operational at 35 centers.

Tie up with Reliance General Insurance for providing accidental insurance for deposit account holders at a premium of Rs.6.99 per lakh which is lowest in the banking industry.

For the current financial year ending March 2007, the Bank has set itself a business target of Rs. 1,11,000 crore consisting of Rs 65,100 crore deposit and advances of Rs. 45,900 crore. The Bank has also identified other thrust areas which include among others mobilization of low cost deposits, increase of Fee based income and reduction of NPAs. By December end the Bank shall be aiming at to cross a landmark of one lakh one thousand crore of business which will usher into new horizons in the new year.

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