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    UCO Bank to soon approach RBI to come out of restrictive PCA framework: CEO

    Synopsis

    The lender became eligible for getting out of PCA after its March quarter results when it adhered to all the PCA criteria, which have been relaxed since late last year.

    UCO-BANK--BCCL
    The bank has shown modest improvements in the key parameters for the June quarter.
    Kolkata: State-owned Uco Bank will soon approach the Reserve Bank of India seeking an exit from the restrictive prompt corrective action (PCA) framework, chief executive AK Goel said, after announcing net profits for the second quarter in a row.

    The lender became eligible for getting out of PCA after its March quarter results when it adhered to all the PCA criteria, which have been relaxed since late last year. The bank has shown modest improvements in the key parameters for the June quarter.

    Goel said that the meeting could not take place so far because of lockdown which forced several officials working remotely from home.

    Uco has reported Rs 21.5 crore of net profit for the June quarter, owing to a sharp dip in provisioning for bad loans. It had reported a net loss of Rs 602 crore in the year ago period.

    Total provisions fell 35% to Rs 1180 crore from Rs 1803 core in the same period with provision for bad loans falling 59% to Rs 565 crore from Rs 1375 crore. Gross non-performing assets improved to 14.38% at the end of June from 16.77% a quarter back while the net ratio fell to 4.95% from 5.45% sequentially.

    Uco's operating profit for the quarter under review grew a tad at Rs 1223 crore as against Rs 1201 crore.

    Goel also said that there has been no discussion with the government on the possibility of a second round merger.

    He said that the big bang mergers involving 10 public sector banks including Punjab National Bank, Canara Bank, Indian Bank and Union Bank of India has to be stabilised before talks of further merger takes place.




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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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