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earnings | IST

UCO Bank expects 7-10% loan growth in FY22; margins to hold around 2.7%

State-run UCO Bank reported an almost fivefold jump in its net profit at Rs 80 crore in the last quarter of the fiscal ended March 2021. The Kolkata-headquartered lender had posted a net profit of Rs 16.78 crore in the corresponding quarter a year ago. For the full year 2020-21, the bank reported a net profit of Rs 167.04 crore.

State-run UCO Bank reported an almost fivefold jump in its net profit at Rs 80 crore in the last quarter of the fiscal ended March 2021. The Kolkata-headquartered lender had posted a net profit of Rs 16.78 crore in the corresponding quarter a year ago. For the full year 2020-21, the bank reported a net profit of Rs 167.04 crore.
AK Goel, MD and CEO of UCO Bank spoke to CNBC-TV18 to discuss the fine print.
Goel said, “There is an increase in the market share as well as the growth in the advances. The major portion has come from retail. If you see the growth in the retail it is more than 15 percent in the last financial year and similar growth in the MSME is also at around 17 percent.”
On loan growth, he said, “We are seeing in the current financial year 21-22, it will be around 7-10 percent.”
On margins, he said, “On account of the growth margins will not increase too much. It is basically the role of the interest rates you are charging. Net interest margins (NIM) in the last quarter was 2.70 percent. We are of the view we will be in the position to maintain the NIM around 2.70-2.75 percent.”
For full management commentary, watch the video.