UCO Bank bad loans of Rs 414 crore improves through NCLT mechanism in Q2FY24

New Delhi: Public Sector Lender UCO Bank has recovered Rs 414 crore from 26 accounts through the NCLT mechanism during the second quarter of the current fiscal, an official said. A total of the recovered amount, Rs 393 crore came from 14 accounts resolved, and Rs 21 crore from 12 under liquidation, he said.

"During the July-September quarter, Rs 414 crore was recovered from resolution and liquidation combined. Recovery through the resolution process during the period was Rs 393 crore, significantly higher than the year-ago figure of Rs 82 crore and the June quarter's Rs 34 crore," according to officials.

The Recovery proceeded under the National Asset Reconstruction Company Ltd (NARCL) for the government-backed bank during the quarter was negligible, with only one account worth Rs 4 crore resolved, he said. As of September 30, 2024, UCO Bank had exposure to 238 accounts, referred to the Insolvency and Bankruptcy Code (IBC) process, totaling Rs 18,163 crore, he added.

By the end of September 2024, the lender had identified six accounts under NARCL with a total exposure of Rs 878 crore. The Bank posted a 50 percent jump in its net profit to Rs 603 crore for the second quarter of the current fiscal.

In terms of shares perspective, UCO Bank has outperformed the Sensex by a significant margin. On October 21, the stock's performance was 4.10% compared to the Sensex's 0.36%. In the past month, the bank's performance has been relatively stable with a decrease of only 0.94%, while the Sensex has seen a decline of 3.58%.

It has seen a positive trend in its stock performance on October 21, 2024. The stock has gained 4.4% on this day, outperforming the sector by 3.5%. This marks the second consecutive day of gains for the stock, with a total increase of 5% in the past two days.