UCO Bank Reports Strong Q4 FY23 Performance with 24% Profit Growth

1 min read     Updated on 29 Apr 2025, 06:32 AM
scanxBy ScanX News Team
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Overview

UCO Bank's Q4 FY23 results show significant growth with net profit up 24% to ₹6.52 billion. Interest income rose 15% to ₹67.45 billion. Asset quality improved with GNPA ratio at 2.69% and NNPA at 0.50%. The bank exceeded guidance with 11.56% deposit growth and 17.72% credit growth.

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*this image is generated using AI for illustrative purposes only.

UCO Bank , a prominent public sector lender, has reported a robust financial performance for the fourth quarter of fiscal year 2023, showcasing significant growth in profitability and improved asset quality.

Profit Surge

The bank's net profit for Q4 FY23 stood at ₹6.52 billion, marking a substantial increase of 24% compared to ₹5.26 billion in the same period last year. This impressive growth in profitability underscores the bank's effective strategies and operational efficiency.

Revenue Growth

UCO Bank's interest income saw a notable rise, reaching ₹67.45 billion in Q4 FY23, up from ₹58.60 billion in the corresponding quarter of the previous year. This 15% increase in interest earned reflects the bank's ability to expand its lending activities and optimize its interest-earning assets.

Asset Quality Improvement

The bank has made significant strides in improving its asset quality:

  • Gross Non-Performing Assets (GNPA) ratio decreased to 2.69% from 2.91% in the previous quarter
  • Net Non-Performing Assets (NNPA) ratio improved to 0.50% from 0.63% quarter-on-quarter

This improvement in asset quality indicators demonstrates the bank's effective risk management and recovery efforts.

Provisions and Contingencies

UCO Bank set aside ₹6.63 billion for provisions and contingencies during the quarter, ensuring adequate coverage for potential risks.

Business Growth

The bank has exceeded its guidance for both deposit and credit growth:

Parameter Growth
Deposit 11.56%
Credit 17.72%

These figures indicate strong business expansion and increased market penetration.

Outlook

With its strong financial performance, improved asset quality, and robust business growth, UCO Bank appears well-positioned for sustained growth in the coming quarters. The bank's ability to exceed its guidance on key parameters reflects effective management and successful implementation of its business strategies.

Investors and stakeholders can view these results as a positive indicator of the bank's financial health and future prospects. However, it will be crucial for UCO Bank to maintain this momentum and continue focusing on asset quality and business growth in the competitive banking landscape.

Historical Stock Returns for UCO Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-3.18%-0.38%-0.48%-32.50%-45.81%+142.58%

UCO Bank Plans Massive Equity Issuance to Reduce Government Stake

1 min read     Updated on 28 Apr 2025, 08:14 PM
scanxBy ScanX News Team
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Overview

UCO Bank has announced plans to issue up to 270 crore fresh equity shares in FY 2025-26, aiming to reduce the government's stake to 75%. This follows a recent QIP that raised Rs. 2,000 crore and reduced government shareholding to 90.95%. The new issuance, with a face value of Rs. 10 per share, could potentially be valued at Rs. 8,000 crore. The bank reported strong financial results for FY 2024-25, with a 47.80% increase in net profit to Rs. 2,445 crore and improved asset quality. A dividend of Rs. 0.39 per share has been recommended.

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*this image is generated using AI for illustrative purposes only.

UCO Bank , a prominent public sector lender, has unveiled ambitious plans to issue up to 270 crore fresh equity shares in the fiscal year 2025-26. This strategic move aims to reduce the government's stake in the bank to 75%, aligning with SEBI's minimum public shareholding norms.

Recent Capital Raise and Current Shareholding

The bank recently completed a Qualified Institutional Placement (QIP), raising Rs. 2,000.00 crore. This capital infusion has already brought down the government's shareholding to 90.95%. The success of this QIP demonstrates investor confidence in UCO Bank's growth trajectory and financial health.

Planned Equity Issuance

The bank's Board of Directors has approved an equity capital raising plan for FY 2025-26, which includes:

  • Issuance of up to 270 crore fresh equity shares
  • Face value of Rs. 10.00 per share
  • Aggregate face value of Rs. 2,700.00 crore
  • To be executed through various modes such as QIP, FPO, etc.
  • May be carried out in one or more tranches

Based on the current market price, this new issuance could potentially be valued at around Rs. 8,000.00 crore, significantly boosting the bank's capital base.

Regulatory Compliance and Approvals

The proposed equity issuance is subject to:

  1. Approval from shareholders at the upcoming Annual General Meeting
  2. Necessary statutory and regulatory approvals

This move aligns with the government's broader strategy to reduce its stake in public sector banks while ensuring they remain well-capitalized to support economic growth.

Financial Performance

For the financial year 2024-25, UCO Bank has reported strong results:

Metric Value (Rs. crore) Year-on-Year Change
Net profit 2,445.00 47.80%
Operating profit 6,037.00 31.92%
Net Interest Income (NII) 9,630.00 18.88%

The bank's asset quality has also shown improvement, with Gross NPA ratio decreasing to 2.69% from 3.46% in the previous year.

Dividend Announcement

In a move that will please shareholders, the Board has recommended a dividend of Rs. 0.39 per equity share (3.90% of face value) for FY 2024-25, subject to shareholder approval.

This equity issuance plan, coupled with the bank's improving financial performance, positions UCO Bank for sustained growth and increased market competitiveness in the coming years.

Historical Stock Returns for UCO Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-3.18%-0.38%-0.48%-32.50%-45.81%+142.58%
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