|
PRESS RELEASES 2006
UCO Bank has clocked a Total Business figure of Rs. 92,361 crore during the year ended 31st March 2006 recording a growth of 18.86% over the total business as of March 2005. While deposits have registered a growth of 10.26% from Rs. 49,470 crore to Rs. 54,544 crore, Advances have increased from Rs. 28,234 crore to Rs.37,817 crore representing a growth rate of 33.94%. The lower growth in deposits was due to the conscious decision of the Bank to fund the growth in advances through increased borrowings at a cheaper cost and reduction of investments. The growth in average deposit and advances during the year amounted to 23.84% and 43.32% respectively. Buoyed by this sound growth in total advances, UCO Bank's domestic market share too has gone up to 2.38% from the last year's 2.28%. There has also been a 20% rise in business per employee by the end of the year. For the year ended 31st March 2006, the Bank has posted an operating profit of Rs. 852 crore as against Rs 838 crore in the previous year despite reduced profit on sale of investment to the tune of Rs.113 crore. Net of treasury profit, the operating profit for 2005-06 has shown an increase of 19.60% over the previous year. However, the net profit declined to Rs.197 crore from Rs 346 crore in the previous year mainly due to (i) increase in provision for depreciation and amortization expenses in respect of investments to the tune of Rs. 101 crore and (ii) increase in provisions towards standard advances to the tune of Rs 53 crore consequent to RBI's guidelines on increase of provision for standard assets from 0.25% to 0.40%. The capital adequacy of the Bank stood at 11.12% as on 31.03.2006 as against 11.26% as on 31.03.2005 despite robust credit growth of 34%. During the year, the bank recorded an increase in its net interest income which, at Rs. 1,566 crore, represents a growth of 11.22% over the Rs.1,408 crore as of March 2005. Interest income from advances showed a healthy growth of 37% over the previous year. The Bank recorded an Operating Profit of Rs.258 crore in March 2006 quarter, thereby recording an impressive growth of 45% over the Operating Profit of Rs.178 crore of the corresponding quarter of the previous year. In spite of such an impressive growth in Operating Profit, the Bank however posted a net loss of Rs.59 crore during the last quarter as against Net Profit of Rs.7 crore in the March 2005 quarter due to increased provision made of Rs.328 crore (previous year Rs.160 crore). The Year also witnessed improved recoveries in NPA accounts. Total recovery amounted to Rs.481 crore as against Rs. 399 crore in the previous year. In absolute terms, the gross NPA of the Bank recorded a significant decline during the year from Rs.1,399 crore to Rs.1,235 crore. The gross NPA ratio stood at 3.27% as on 31/3/2006 as compared to 4.96% as on 31/3/2005. Correspondingly the net NPA ratio also came down from 2.93% to 2.10%. The Bank is in the process of implementing a revised organizational structure suggested by M/s. Boston Consulting Group. The Bank has also started implementing CBS and it is expected that at least 150 branches will be on CBS by 31st March, 2007. The Bank is also planning to double its ATM strength. The Bank also posted a robust growth of 30.10% in agricultural advances and 27.43% growth in SME advances during the year 2005-06.
|
