UCO Bank sets sights on strengthening low-cost deposit accounts, NIM targets

This notable surge in profitability marks a considerable improvement compared to the net profit of Rs 124 crore recorded in the corresponding quarter of the previous year, as stated in the company's regulatory filing.

Furthermore, the bank's net interest income (NII), representing the difference between the interest income generated from lending activities and the interest paid to depositors, witnessed a noteworthy YoY growth of 21.8 percent, totalling Rs 2,008.8 crore, in comparison to the previous year's NII of Rs 1,649.6 crore.

Talking further about CASA, Kumar said, “On the deposit front our focus will be on CASA where we intend to grow our saving account portfolio, current account portfolio.

So, internally we have kept a target to reach 40 percent level though in the current environment when the differential in the savings and FD rate is high, it will be a challenge for the team to bring it to 40, but our endeavour will be to bring additional products in the savings portfolio to make it to 40 percent in times to come.”

He also provided insights into UCO Bank's diverse loan portfolio, shedding light on the bank's focus on specific sectors. The corporate portfolio currently accounts for 39 percent of the bank's loan book, while retail, agri, and micro, small and medium enterprises (MSME) segments together constitute 61 percent. This balanced approach allows UCO Bank to tap into different market segments and mitigate risks associated with concentrated exposures.

Within the retail, agri, and MSME segments, UCO Bank has identified housing, vehicle, and personal loans as the primary focus areas. The bank's strategic emphasis on these segments aligns with the growing demand from consumers and businesses, presenting opportunities for healthy loan growth and increased profitability.