UCO Bank has reported a significant improvement in its financial performance for the fourth quarter of the fiscal year 2022-23. The bank’s net profit has surged by 24% year-over-year (YoY) to Rs 665.7 crore, marking a substantial increase from the same period last year. This impressive growth can be attributed to the bank’s efforts to improve its asset quality, reduce non-performing assets (NPAs), and enhance its operational efficiency.

The bank’s total income for the quarter stood at Rs 6,442.6 crore, up 12.6% YoY from Rs 5,722.3 crore in the corresponding quarter last year. The net interest income (NII) also witnessed a growth of 23.4% YoY to Rs 2,444.9 crore, driven by an expansion in the net interest margin (NIM) to 2.42% from 2.13% in the year-ago quarter.

UCO Bank’s provisions and contingencies for the quarter declined by 24.5% YoY to Rs 845.1 crore, primarily due to a reduction in provisioning requirements for NPAs. The bank’s NPA ratio has also improved significantly, with the gross NPA ratio declining to 3.65% from 4.89% in the same quarter last year. The net NPA ratio also came down to 1.32% from 2.05% YoY.

The bank’s capital adequacy ratio (CAR) stood at 13.74% as of March 31, 2023, above the regulatory requirement of 10.875%. The return on assets (ROA) improved to 0.66% from 0.54% in the year-ago quarter, while the return on equity (ROE) increased to 11.64% from 9.13% YoY.

In terms of business growth, UCO Bank reported a 10.1% YoY increase in advances to Rs 1,39,936 crore, while deposits grew by 7.2% YoY to Rs 2,33,357 crore. The bank’s CASA (current account, savings account) deposits rose by 12.2% YoY to Rs 83,120 crore, with the CASA ratio improving to 35.71% from 33.42% YoY.

Overall, UCO Bank’s Q4 performance is a reflection of the bank’s efforts to transform its business and improve its financial health. The bank’s focus on reducing NPAs, improving asset quality, and enhancing operational efficiency has yielded positive results, positioning it for sustainable growth in the long term. With a strong capital base, improving profitability, and a growing business, UCO Bank is well-placed to capitalize on emerging opportunities and drive growth in the banking sector.