Q2 2025 UCO Bank Earnings Call Transcript
Key Points
- UCO Bank (BOM:532505) reported a significant growth in total business by 13.56% year-over-year, with deposits increasing by 10.57% and advances by 18%.
- The bank's operating profit for the quarter ended September 30, 2024, grew by 45.82% year-over-year, reaching INR 1,432 crore.
- Net profit saw a substantial increase of 50% year-over-year, amounting to INR 603 crore for the quarter.
- Net interest income for the quarter grew by 20% year-over-year, contributing to an improved net interest margin of 3.10% compared to 2.84% in the previous year.
- Asset quality improved with gross NPA reducing to 3.18% from 4.14% year-over-year, and net NPA improving by 38 basis points to 2.73%.
- The bank experienced higher slippage during the quarter, primarily due to one corporate account, impacting the overall slippage ratio.
- Despite improvements, the cost of funds increased by 32 basis points, which could pressure future margins if not managed effectively.
- Agricultural slippages were notably higher this quarter at INR 206 crore compared to INR 48 crore in the previous quarter.
- The bank's restructured book remains significant at INR 2,786 crore, with a substantial portion related to COVID restructuring.
- UCO Bank's overseas loan book has not grown due to insufficient margins, indicating potential challenges in expanding this segment.
Good afternoon, ladies and gentlemen, welcome to UCO Bank (technical difficulty) '25 call. It is my pleasure to introduce to you the senior management of UCO Bank. With us, we have Mr Ashwani Kumar MD (technical difficulty); Mr Rajendra Kumar Saboo, Executive Director, Vijay and (inaudible) Executive Director.
We have opening remarks from the MD sir, post which we open the floor for question and answer. (technical difficulty)
Thank you. I welcome all investors and analysts with this post quarter two results. Well, total business of the bank grew by 13.56% on a Y-o-Y basis to INR4,33,704 of which deposits grew by 10.57% at INR2,75,777 crore, advances grew by 18% to INR1,97,927 crore.
Our RAM, total RAM stood at INR1,08,200 crore with a growth of 20% on a Y-o-Y basis and RAM retailed adavnced is stood at INR47,039 crore with registering a growth of 29.36% which was fueled by home loan and vehicle loan growth, home loan growth of 19% and vehicle loan growth of 38.66%
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