State-run Uco Bank has once more urged the Reserve Bank of India to think about taking it out of the the prompt corrective action (PCA) framework immediately after posting complete year profit for the last fiscal, its MD & CEO AK Goel mentioned on Monday.
The RBI had initiated PCA for the Kolkata-based lender in May 2017 in view of higher non-performing assets and unfavorable return on assets. In the last monetary year, the bank posted a complete-year net profit of Rs 167.04 crore as against a whopping Rs 2,436.83 crore net loss throughout FY20. During FY19, net loss had stood at Rs 4,321 crore.
“We approached the RBI to consider taking the bank out of the PCA framework after declaring the fourth quarter results. The bank registered full-year profit. It has meet all the criteria for exiting PCA,” Goel mentioned in a virtual press conference.
The lender had earlier approached the central bank on lifting the restrictions immediately after it had posted a net profit throughout the last quarter of the monetary year FY20. After creating losses for various consecutive quarters, the bank had reported a net profit of Rs 16.78 crore for Q4FY20.
Last month, Uco Bank reported a practically fivefold year-on-year jump in its net profit to Rs 80.03 crore for the fourth quarter last fiscal from Rs 16.78 crore for the very same period of FY20. The lender showed a considerable improvement in its asset excellent throughout the fourth quarter as its NPAs in absolute terms fell 41% y-o-y at Rs 11,351.97 crore. Gross NPA ratio stood at 9.59%, though net NPA ratio was 3.94%.
On restructuring below the RBI’s new policy on loan recast, Goel mentioned the bank currently extended relief below Resolution Framework 2.. to 2314 accounts, amounting `127 crore as on June 7. “We are expecting around Rs 1,000 crore of loans required to be invoked for restructuring by June itself. For the whole of the year the numbers may be more.” he added.
Banks and lending institutions can invoke restructuring below the proposed framework till September 30. The restructuring would be obtainable to borrowers with exposure up to Rs 50 crore. In the last monetary year, Uco Bank had restructured significantly less than Rs 400 crore of retail and MSME loans.