By Malvika Gurung
Investing.com -- Shares of the state-owned lender UCO Bank (NS: UCBK ) surged 4.4% on Wednesday in early trade, hitting the session’s high of Rs 30.75 apiece, following a record jump in quarterly net profit for the Oct-Dec 2022 period.
The public sector bank’s net profit rallied by a whopping 110.4% YoY and 29.4% sequentially to Rs 652.97 crore in the December quarter on the back of a rise in the net interest income (NII).
The lender’s net interest income climbed 10.7% YoY to Rs 1,951.9 crore in the Dec quarter, led by healthy growth in the loan book and better yield on advances.
UCO Bank is a multibagger stock that has rallied over 130% in one year.
According to UCO Bank’s MD & CEO, Soma Shankara Prasad, the NII for Q3 FY23 includes an exceptional interest income of recovery in the account of Air India, aggregating to around Rs 200 crore, excluding which, the lender’s NII recorded a 25% YoY growth in the quarter.
The state-run lender’s asset health also improved in Q3 FY23, with the gross NPA falling 15.3% YoY to Rs 8,506.1 crore, and net NPA tanking 27.8% to Rs 2,406.9 crore.
The bank’s net interest margin (NIM), a key profitability index, changed marginally to 2.99% in the Dec quarter from 3.03% in the year-ago period and 2.84% in the preceding quarter.
Its other total income rose 17.5% YoY to Rs 5,450.6 crore, and other income climbed almost 15% to Rs 823 crore, led by a robust recovery in written-off accounts as well as commission from third-party products.
The lender’s loan book witnessed a robust growth of 20.35% YoY in the Dec quarter at Rs 1,51,059.08 crore.
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