UCO Bank aims Rs 3000 Crore Recovery This Fiscal Year, Read what UCO Bank MD&CEO said

UCO Bank, a public sector lender based in the city, is optimistic about recovering over Rs 1000 crore in the upcoming third and fourth quarters. The bank aims to finish the fiscal year with a total recovery of Rs 3000 crore, as revealed by Ashwani Kumar, the Managing Director and CEO of UCO Bank. Click here to check UCO Bank Net Profit for Sep 2024 Quarter. Click here to download UCO Bank Q2 Results PDF.

UCO Bank has reported a 50% year-on-year (YoY) jump in net profit at ₹602 crore for the second quarter that ended September 30, 2024.

Strong Recovery in the First Half

In an interview with the Times of India, Kumar shared that approximately Rs 479 crore of the total recovery in the first half of the fiscal year came from National Company Law Tribunal (NCLT) accounts. In the second quarter alone, the bank achieved a recovery of Rs 1,017 crore, with Rs 414 crore sourced from NCLT accounts, primarily from two significant cases.

Overview of the Bank’s Credit Portfolio

UCO Bank has a total advance book of Rs 1.9 lakh crore. Last year, the bank reported a total recovery of Rs 3,127 crore. Kumar explained that the bank’s credit portfolio is diversified, with 62% in retail, micro, small, and medium enterprises (MSMEs), and agriculture sectors. The remaining 38% is dedicated to corporate lending. Notably, the retail sector makes up 27% of the loan book, with housing loans being the largest segment at 54%.

Kumar emphasized the impressive growth in the vehicle loan segment, which has expanded by 38% over the past year, rising from Rs 2,500 crore to Rs 3,500 crore. Despite representing only 7% of the total loan book, this sector has shown consistent double-digit growth for the last six quarters.

Targeting Growth in Credit and Deposits

In terms of overall growth, UCO Bank is targeting a credit increase of 12-14% and a deposit growth of 10% for the fiscal year. According to data from the Reserve Bank of India (RBI) as of October 4, deposit growth is finally outpacing credit growth across the banking industry.

Measures to Improve Credit Delivery

To facilitate quicker credit delivery and improve the bank’s Current Account Savings Account (CASA) and retail term deposits, UCO Bank has implemented various measures. These include the establishment of dedicated hubs focused on retail, MSME, agriculture, and other sectors. Kumar noted, “We have segregated sourcing and sanctioning to enhance standardization and monitoring.”

UCO Bank has maintained its CASA deposit at 38% for the past 5-6 quarters and is aiming to increase it to 40% in the upcoming quarters, indicating a strong focus on enhancing its deposit base while ensuring sustainable growth in lending.