UCO Bank has launched a Rs 2,000 crore qualified institutional placement (QIP), with shares priced at Rs 34.2 each, representing a discount to the bank's previous closing price. This initiative is expected to grab the market's attention on March 24, as the state-run lender aims to raise funds through institutional investors.
In the past six months, UCO Bank’s share price has fallen by over 20%, underperforming the broader market, with the Nifty 50 index losing only 9% during the same period. Despite this, the bank has shown strong performance in its recent financial results.
In Q3FY25, UCO Bank reported a robust 27% year-on-year increase in net profit, reaching Rs 639 crore, compared to Rs 502 crore in Q3FY24. Net interest income (NII) surged by 19.6% YoY to Rs 2,377 crore, while total income rose 15% to Rs 7,406 crore. These figures reflect the bank’s improving core operations and profitability.
Additionally, the bank has seen a steady improvement in asset quality. Gross non-performing assets (GNPA) declined to 2.91%, down from 3.18% in the previous quarter, and net NPAs dropped to 0.63%.
Looking ahead, UCO Bank has set a target for 8-10% deposit growth and 12-14% credit growth in FY25. The management anticipates the slippage ratio to stay between 1-1.25%, with credit costs remaining under 1%. GNPA and NNPA are expected to stay below 3% and 0.65%, respectively.
