Personal loan lender UCO Bank gets a relief of 6 months in PCR norms

Personal loan lender, UCO Bank has obtained a 6 month extension from RBI for reaching the provision coverage ratio of 70%. The extension obtained by the bank is valid till March 31.

Provision coverage ratio (PCR) is the sum of money that must be put aside by banks for non performing assets (NPAs).

As UCO Bank has obtained extension, it now requires to provide another Rs 400 crore just to reach the level of 70% PCR. In the Q1 of this fiscal, the bank’s PCR was 58.64% while gross NPAs stood at Rs 1,929 crore.

The bank had first asked for extension till September 2011 but has got the extension till March 2011. The bank also maintains that over time ratio of NPAs would also increase and the Rs 400 crore limit may also go up.