UCO Bank Reports Strong Q4 FY23 Performance with 24% Profit Growth
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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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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-3.18% | -0.38% | -0.48% | -32.50% | -45.81% | +142.58% |