UCO Bank - First quarter, second quarter, Third Quarter and annual results

Financial Results 2010

Audited Financial Results for the Year Ended 31.03.2010

Particulars	(Rs. in lakhs)
	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended	Year Ended	Year Ended
	31.03.2010	31.03.2009	31.03.2008	31.03.2010	31.03.2009	31.03.2008
	(Audited)	(Audited)	(Audited)	(Audited)	(Audited)	(Audited)
1. Interest Earned (a)+(b)+(c)+(d)	243591	216428	177819	952632	812138	650856
(a) Interest/discount on advances / bills	175134	163949	129488	710685	619666	475525
(b) Income on investments	60794	46604	45335	218898	175518	157204
(c) Interest on balances with R.B.I & other inter-bank funds	5013	5323	2181	19887	14358	10430
(d) Others	2650	552	815	3162	2596	7697
2. Other Income	25409	35634	27510	96593	101990	77213
3. Total Income (1+2)	269000	252062	205329	1049225	914128	728069
4. Interest Expended	169198	178957	138783	720220	647668	502081
5. Operating Expenses (i) + (ii)	43244	40361	33856	158442	146298	130593
(i) Employees Cost	28778	27509	23081	105762	99754	89454
(ii) Other Operating Expenses	14466	12852	10775	52680	46544	41139
6. Total Expenditure (4+5) (excluding Provisions and Contingencies)	212442	219318	172639	878662	793966	632674
7. Operating Profit (Before Provisions and Contingencies) (3-6)	56558	32744	32690	170563	120162	95395
8. Provisions (other than tax) and Contingencies	17685	21721	25521	65647	63128	57630
...of which provision for NPA	20369	7124	17200	35380	26842	37007
9. Exceptional Items	0	0	0	0	0	0
10. Profit(+)/Loss(-) from Ordinary Activities before tax (7-8-9)	38873	11023	7169	104916	57034	37765
11. Tax Expenses	893	767	(1430)	3698	1262	(3451)
… of which provision for FBT	0	75	116	0	268	309
12. Net Profit(+)/Loss(-) from Ordinary Activities after tax (10-11)	37980	10256	8599	101218	55772	41216
13. Extraordinary items	0	0		0	0	0
14. Net Profit/(Loss) for the period (12-13)	37980	10256	8599	101218	55772	41216
15. Paid-up Equity Share Capital (Face Value Rs.10/- each)	54936	54936	79936	54936	54936	79936
16. Reserves excluding Revaluation Reserves	306212	224571	168517	306212	224571	168517
(As per balance sheet of previous accounting year)
17. Analytical Ratios
(i) Percentage of shares held by Govt. of India	63.59%	63.59%	74.98%	63.59%	63.59%	74.98%
(ii) Capital Adequacy Ratio: Basel-I	11.35%	9.75%	10.09%	11.35%	9.75%	10.09%
Basel-II	13.21%	11.93%	11.02%	13.21%	11.93%	11.02%
(iii) Earning Per Share (EPS) (in Rs.)
Basic and Diluted EPS before and after Extraordinary items for the period, for the year to date and for the previous year.	*6.91	*1.87	*1.08	18.42	7.63	5.16
(iv) NPA Ratios
a) Amount of Gross NPA	166643	153951	165195	166643	153951	165195
b) Amount of Net NPA	96628	81267	109230	96628	81267	109230
c) % of Gross NPA	1.99	2.21	2.97	1.99	2.21	2.97
d) % of Net NPA	1.17	1.18	1.98	1.17	1.18	1.98
e) Return on Assets (Annualised) (%)	1.22%	0.40%	0.40%	0.87%	0.59%	0.52%
18. Public Shareholding
- No. of Shares (in lakh)	2000	2000	2000	2000	2000	2000
- Percentage of Shareholding	36.41%	36.41%	25.02%	36.41%	36.41%	25.02%
19. Promoters and Promoter Group Shareholding
a) Pledged/Encumbered
Number of Shares	Nil	Nil	Nil	Nil	Nil	Nil
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil	Nil	Nil	Nil
Percentage of Shares (as a % of the total share capital of the Company)	Nil	Nil	Nil	Nil	Nil	Nil
b) Non-Encumbered
Number of Shares (in lakh)	3493.60	3493.60	5993.60	3493.60	3493.60	5993.60
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	100%	100%	100%	100%	100%	100%
Percentage of Shares (as a % of the total share capital of the Company)	63.59%	63.59%	74.98%	63.59%	63.59%	74.98%
* Not annualised
	2006-07	2007-08	2008-09
Dividend declared per share	Re.1	Re.1	Re.1
Book Value per Share (Rs.)	27.66	31.08	50.88

Segment Reporting as on 31.03.2010
(Rs.in Lakhs)
PART : A BUSINESS SEGMENT
Sl. No.	Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended	Year Ended	Year Ended
		31.03.2010	31.03.2009	31.03.2008	31.03.2010	31.03.2009	31.03.2008
		(Audited)	(Audited)	(Audited)	(Audited)	(Audited)	(Audited)
1)	Segment Revenue
	i) Treasury Operations	70576	67570	59855	271084	231437	200599
	ii) Corporate/Wholesale Banking	146234	111185	87134	490588	374465	266679
	iii) Retail Banking	50071	72128	56904	281274	299240	257761
	iv) Other Banking Operations	2119	1179	1436	6279	8986	3030
	v) Unallocated
	Total Income from operation	269000	252062	205329	1049225	914128	728069

2)	Segment Results
	i) Treasury Operations	(10232)	17619	7689	(3471)	4012	(1502)
	ii) Corporate/Wholesale Banking	21035	(2086)	(5961)	54514	20559	12491
	iii) Retail Banking	25951	(5689)	4005	47594	23477	23747
	iv) Other Banking Operations	2119	1179	1436	6279	8986	3029
	v) Unallocated
	Total Profit Before Tax	38873	11023	7169	104916	57034	37765

3)	Capital Employed
	(Segment Assets - Segment Liabilities)
	i) Treasury Operations	92831	76945	53377	92831	76945	53377
	ii) Corporate/Wholesale Banking	279069	177262	130092	279069	177262	130092
	iii) Retail Banking	149153	141498	119752	149153	141498	119752
	iv) Other Banking Operations	0	0	0	0	0	0
	v) Unallocated
	Total Capital Employed	521054	395705	303221	521054	395705	303221

PART : B GEOGRAPHIC SEGMENT
	Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended	Year Ended	Year Ended
		31.03.2010	31.03.2009	31.03.2008	31.03.2010	31.03.2009	31.03.2008
		(Audited)	(Audited)	(Audited)	(Audited)	(Audited)	(Audited)
	Domestic
	i) Revenue	263293	243970	196799	1026458	879481	694069
	ii) Assets	12950493	10429113	8381513	12950493	10429113	8381513
	International
	i) Revenue	5707	8092	8530	22767	34647	34000
	ii) Assets	781456	737304	597981	781456	737304	597981

	Global
	i) Revenue	269000	252062	205329	1049225	914128	728069
	ii) Assets	13731949	11166417	8979494	13731949	11166417	8979494

NOTES

The financial results for the year ended 31.03.2010 have been audited by Statutory Central Auditors and approved by the Board of Directors at its meeting held on 30th April 2010.
The working results for the year ended 31.03.2010 have been arrived at after considering the provision for non-performing assets, standard assets, diminution in fair value and investment depreciation on the basis of prudential norms issued by the Reserve Bank of India (RBI) and making necessary provision for Income Tax, Depreciation on Fixed Assets, etc.
In terms of the Revised Accounting Standard (AS)-15 issued by the Institute of Chartered Accountants of India (ICAI) provision has been made for Employee Benefits viz. pension, gratuity, leave encashment, LFC/LTC, sick leave etc. The provision charged to Profit & Loss Account includes Rs. 88.68 crore (Rs. 88.68 crore) towards amortization of the increase in transitional liability over the pre-revised AS-15 liability and Rs. 265.06 crore (Rs. 118.07 crore) towards current liability for the year ended 31.03.2010. The unamortized portion of the increase in liability on account of Revised AS-15 is Rs. 177.37 crore (Rs. 266.06 crore) as on 31.03.2010.
Government of India has subscribed to bank’s Tier I Capital instrument, viz. Perpetual non-cumulative Preference Shares PNCPS of Rs.450 crore (Rs.450 crore) on 31.03.2010 carrying an annual floating coupon benchmarked to Repo rate with a spread of 100 basis points to be reset annually.
During the year the Bank has raised subordinated debt of Rs. 800 crore (Rs.275 crore) and Upper Tier II Bond of Rs. 500 crore (Nil) by issue of unsecured redeemable bonds under Tier II Capital.
Out of salary arrears of Rs.284.06 crore(due from 01.11.07 to 31.03.2010) Rs.134.06 crore has been provided in the current year after taking into account adhoc provision of Rs.150 crore provided last year for 17 months ended 31.03.2009.
The Bank has recognized, MAT Credit to the extent of Rs. 160.64 crore (Rs. 74.22 crore) for the year ended 31.3.2010 as MAT Credit Entitlement under Section 115JAA of the Income Tax Act, 1961 and treated the same as an Asset. The Bank has provided Rs. 98.22 crores, towards additional MAT liability arising out of retrospective amendments under Sec 115JB beginning from Asst. year 1998-99 and also recognized Rs.73.55 crore MAT Credit against such provisions relating to Asst. years 2006-07 onwards.
The Observation of Auditors

The consequential effect of

(a) Reconciliation / adjustment of pending outstanding entries in the Inter-Office and Inter-Bank transactions, (b) Accounting of income from commission earned on Letters of Credit and Guarantees issued, on cash basis, not being in accordance with AS 9 on Revenue Recognition issued by ICAI and (c) Classification of Credit Linked Notes (CLNs) as Loans and Advances instead of Investments, on the financial results has not been ascertained.

Our Reply

Reconciliation of outstanding entries in Suspense Accounts, Inter Branch/Office Accounts and accounts with RBI and accounts with other Banks have been completed upto 31.03.2010 and elimination of outstanding entries is in progress. The impact of such reconciliation and the recognition of above referred Income on cash basis on the accounts will not be material. Bank has sought clarification from RBI on classification of CLNs.
Pursuant to the guidelines contained in Reserve Bank of India communication vide DBOD.BP.BC.No.133/21.04.018 /2008-09 dated May 11, 2009 the Bank has transferred Rs.1.13 crore to Profit & Loss Account representing unreconciled credit entries in Nostro Mirror Accounts originated between April, 1996 and March 31, 2002.
During the year an amount of Rs.101.89 crore (Nil), being unrealized interests on restructured advances that has been funded by the Bank, has been charged to Profit & Loss Account as per RBI’s guidelines.
Dividend @ Rs.1.50 per equity share of Rs.10 each and at stipulated rate on PNCPS has been recommended by the Board.
Number of Investor Complaints:- (i) Outstanding at the beginning of the quarter-02, (ii) Received during the quarter-564, (iii) Disposed of during the quarter-564 and (iv) Outstanding at the end of the quarter-02.
The previous period figures have been regrouped /rearranged wherever necessary.


Place : Kolkata Date : 30.04.2010	Ajai Kumar Executive Director	Virendra Kumar Dhingra Executive Director	Subodh Kumar Goel Chairman & Managing Director