The shares of the leading PSU bank witnessed a surge of over 6% following a 50% year-on-year increase in net profit and a reduction in non-performing assets (NPA) in Q2 FY25.
Share price variations:
With a market capitalization of Rs. 56,372.34 crores, UCO Bank Ltd. rose to an intraday high of Rs. 48.40 representing a 6 percent increase from its previous closing price of Rs. 45.65 per share.
Reason for the Rise:
According to exchange filings, UCO Bank Ltd. reported a 50 percent year-on-year increase in net profit to Rs 603 crore, in Q2FY25 from Rs 402 crore in Q2FY24. On a quarter-on-quarter basis, net profit surged by 9.43 percent, rising from Rs. 551 crore in Q1 FY25.
Net interest income grew by 20 percent year-on-year to Rs. 2,301 crore, compared to Rs. 1,917 crore in the same period last year. Sequentially, net interest income increased by 2.08 percent from Rs. 2,254 crore in Q1 FY25. Gross Non-Performing Assets(NPA) stands at 3.18 percent in Q2FY25 from 3.32 percent in Q1FY25.
For the first half of FY25, Net Interest Income rose by 16.02 percent to Rs. 4,555 crores, up from Rs. 3,926 crores in H1 FY24, while net profit showed an increase of 84.64 percent, reaching Rs. 1,154 crores compared to Rs. 625 crores in the previous year.
About the company:
UCO Bank Ltd, a Government of India Undertaking, offers a range of banking solutions, including international services, NRI services, loans, deposits, e-banking, and direct tax collection through authorized branches.
As of October, the bank operates 3,247 domestic branches, with 34.5 percent in rural areas, 27.1 percent in semi-urban regions, 19.6 percent in urban areas, and 18.8 percent in metro areas. Additionally, it has two overseas representative offices, one additional office, and approximately 2,472 ATMs.
Written By: Joseph Pv
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