Bad Loans have hurt UCO Bank 40.52 per cent decline in

By | March 30, 2011

A recent press report said that Uco bank has reported 40.52 per cent decline in its net profit over the same period a year ago. Experts said that a flat operating profit in the last quarter of 2010-11 along with high provisioning for bad loans has brought down the net profit of the bank, for the quarter ended March.

The bank has reported net profit of Rs 225.9 crore for the quarter ended March 2011 from Rs 379.8 crore in the same period the previous year. The operating profit of the bank has slightly gone up from Rs 379.8 crore to Rs 225.9 crore.

Arun Kaul, chairman and managing director of Uco Bank said that the rise in bad loans and higher provisioning for employee benefits compared with the previous corresponding period has pulled its net profit down. He added saying that in the fourth quarter alone, the bank has seen a slip of Rs 1,184-crore loan compared with Rs 770 crore in the last quarter of 2009-10.

Reports suggested that, Uco bank having fairly large basket of loan products such as home loan, personal loan, car loan etc, has to increase its provisioning for bad loans nearly three-fold to Rs 1,180 crore in 2010-11 compared with Rs 354 crore in 2009-10.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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