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PRESS RELEASES 2006
UCO BANK'S first quarter net profit has recorded a jump of 36 % to Rs. 61.50 Crore from Rs 45 crore in the corresponding previous period. Operating profit also rose by 29 % to Rs. 233.70 from Rs. 181 crore in the first quarter of the previous financial year. The Bank's interest income posted a growth of 22.18 % during the same period and it grew to Rs. 1,223 crore from Rs. 1,001 crore. Total income recorded a Year-on-Year growth of 23 % during the quarter and grew to Rs. 1336 crore from Rs. 1,084 crore. Interest income from advances registered an increase of Rs. 204.36 crore with a higher growth of 35.11%. Non Interest income also increased by Rs. 23.26 crore, the growth rate being 34.44 %. Deposits increased from Rs. 47,277 crore to Rs. 55,595 crore registering a growth of 17.60 % year-on-year. The growth rate in Advances is more robust at 29.02 %. Advances increased from Rs. 28,687 crore as on 30.6.2005 to Rs. 37,014 crore as on 30.6.2006. UCO BANK achieved a total business level of Rs. 92,609 crore as on 30th June 2006, as against Rs. 75,964 crore as on 30th June 2005 recording a year-on-year growth of 21.91 %. The Gross NPAs and Net NPAs have come down in absolute terms during the period from Rs 1,362 crore and Rs 836 crore to Rs 1,267 crore and Rs.763 crore respectively. The Gross NPA Ratio declined to 3.42 % as on 30.6.2006 as against 4.75% as on 30.6.2005 The Net NPA Ratio is also down to 2.09 % as on 30.6.2006 from 2.95 % a year ago. The capital adequacy ratio improved to 11.91% compared to 10.53% a year ago and is well above the minimum required level of 9%. The Bank raised capital to the tune of Rs. 230 crore by issuing Innovative Perpetual Debt Instruments ranking for tier -I capital and another amount of Rs. 500 crore by issuance of bonds ranking for upper tier -II Capital during the quarter ended 30.6.2006. During the quarter ended 30.6.2006 bank has also launched Core Banking Solution at six branches. The Bank has targeted to introduce CBS facility in 20 more branches by 30.9.2006. "Anywhere-Branch-Banking" has been introduced at 155 branches. With a view to tackling the increasing level of challenges and competition in the banking industry, UCO Bank has since restructured its organizational set up to suit the changing times, which would also enable the Bank to leap-frog to a position of eminence amongst the select band of top nationalized banks. Under the revised organizational structure, the Bank now has a
three-tier administrative set up designed to improve operational efficiency and facilitate
fast decision making. The existing geography oriented four-tier administrative set up has
been replaced by a function specific three-tier set up. Under this new structure, there
will be more focus on each customer segment. The four customer segments identified for
focused business growth are, Under the proposed strategy the Retail and Small Enterprises business segments will be accorded a significant push by forming of Sales Force teams consisting of own staff members in 55 select cities having highest potential for retail and small business. For the current financial year ending March 2007 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 income and reduction of NPAs.
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