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UCO Bank hopes to come out of PCA, turn profitable by FY20 end, says CEO

Updated : May 15, 2019 09:56 AM IST

State-owned UCO Bank said its net loss has narrowed to Rs 1,552.02 crore in March 2019 quarter, amid a persistent high level of bad loan ratio. The bank had reported a net loss of Rs 2,134.36 crore during the corresponding January-March quarter of 2017-18.

Sequentially, the loss in March 2019 quarter was higher than Rs 998.74 crore in the December quarter of 2018-19. Thus, for the entire financial year, there was a net loss of Rs 4,321.09 crore, against Rs 4,436.37 crore loss in 2017-18.

Sharing further details on the Q4 performance and the outlook going forward AK Goel, MD and CEO said, “March 2020, it will be a turnaround year for UCO bank. We will make a profit as well as come out of prompt corrective action (PCA).”

On loan and deposit growth, Goel said it would be between 10 percent and 15 percent in FY20.

However, with regards to recovery, the bank has a higher target and would expect a recovery of Rs 2,000 crore per quarter without the National Company Law Tribunal (NCLT) recoveries, Goel said, adding that the recoveries in FY20 would be to the tune of Rs 8,000 crore without NCLT recoveries.

"In NCLT, the bank is expecting a recovery of Rs 1500 crore in 2-3 accounts," he added.

Goel said their total exposure to IL&FS is of Rs 1,500 crore, while they have no exposure to Jet Airways. As of now, there is no big account in the watch list, he added stating that the slippages are also expected to reduce.
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