Declares divedend: This banking company witnessed a decline in NPA by 132 bps to 3.46 per cent; Do you have it in your portfolio?
The net profit for March 2024 was Rs 1,654 crore, showing a decrease from Rs 1,862 crore reported for the same period in the previous year.
Today, the shares of UCO Bank Limited witnessed a spurt in volume by more than 2.06 times. The company's current market capitalization standing at Rs 68,555.46 crore.
Share Performance:
On Tuesday, the stock opened at Rs 58.80, with the previous closing being Rs 58.50. The 52-week high and low are Rs 70.66 and Rs 25.65, respectively as per BSE.
The company has recently released its financial results for FY2024, and here are some key details:
- The net profit for March 2024 was Rs 1,654 crore, showing a decrease from Rs 1,862 crore reported for the same period in the previous year.
- UCO Bank has seen improved profitability and return, with its operating profit reaching Rs 4,576 crore, marking a 5.43 per cent increase on YoY basis. Additionally, the Credit to Deposit Ratio showed improvement, rising by 620 basis points to 71.02 per cent year-on-year.
- UCO Bank has demonstrated consistent growth in its total business, with a YoY increase of 9.50 per cent to Rs 4,50,007 crore (3.34 per cent from Rs 4,35,456 crore quarter-on-quarter). Gross advances rose by 15.62 per cent YoY to Rs 1,86,877 crore (4.29 per cent from Rs 1,79,195 crore quarter-on-quarter), while total deposits grew by 5.53 per cent year-on-year to Rs 2,63,130 crore.
- The bank also saw an improvement in asset quality, with a reduction in Gross NPA by 132 bps to 3.46 per cent and Net NPA reduction by 40 bps to 0.89 per cent as of March, 2024. Additionally, the Capital Adequacy Ratio (CRAR) improved by 47 bps to 16.98 per cent, and Tier I Capital Ratio improved by 58 bps to 14.54 per cent as of March, 2024 compared to the previous year.
- Moreover, after a gap of nine years, the bank has recommended declaring a dividend of 2.80 per cent on the face value of Rs 10 each. That is 28 paisa per share.
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About company:
UCO Bank offers a comprehensive range of banking and financial services, covering Retail Banking, Corporate Banking, and Treasury Operations.
Business Development:
The loan portfolio of the company comprises various segments, with a significant portion allocated to services at 48.37 per cent, followed by personal loans at 25.31 per cent. Additionally, agricultural, industrial & commercial, and priority sector loans make up 13.47 per cent, 11.91 per cent, and 0.94 per cent respectively. Geographically, the majority of loans are allocated within India, accounting for 93.03 per cent, while the remaining 6.97 per cent is spread across the rest of the world.
Furthermore, the stock has experienced significant buying activity, yielding returns of more than 90 per cent in the last one year.
Disclaimer: The article is for informational purposes only and not investment advice.