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.