IOB, UCO Bank tumble up to 4% on Q1 losses, huge GNPAs
Shares of IOB tumbled 5.12 per cent to hit a low of Rs 25.90 on BSE. The bank had hit a 52-week low of Rs 21.10 in February this year.
By ET Online | Updated:
NEW DELHI: Shares of state-run UCO Bank and Indian Overseas Bank (IOB) came under severe pressure in Wednesday's session following losses that the lenders reported for the June quarter.
IOB on Wednesday reported a net loss of Rs 1,450.50 crore for the first quarter compared with a net profit of Rs 14.76 crore reported for the corresponding quarter last year. UCO Bank, on the other hand, posted a quarterly loss at Rs 440 crore for the third time in a row, as sticky loans kept on rising to alarming levels.
The bank had reported Rs 257 crore net profit for the year-ago period but faced losses in the last two quarters after the Reserve Bank of India's push to improve asset quality pushed the bank to report non-performing assets.
Shares of IOB tumbled 5.12 per cent to hit a low of Rs 25.90 on BSE. The bank had hit a 52-week low of Rs 21.10 in February this year. UCO Bank slipped 5.92 per cent to hit a low of Rs 40.20.
Net non-performing asset of UCO Bank rose to 10.04 per cent of gross advances at the end of June quarter against 4.53 per cent in the year-ago quarter. For IOB, gross NPA as a ratio of gross advances stood at an alarming 20.48 per cent at the end of the first quarter.
On Wednesday, IOB shares closed at Rs 26.35, down 3.48% while those of UCO closed 3.86% lower at Rs 41.10 apiece.
IOB on Wednesday reported a net loss of Rs 1,450.50 crore for the first quarter compared with a net profit of Rs 14.76 crore reported for the corresponding quarter last year. UCO Bank, on the other hand, posted a quarterly loss at Rs 440 crore for the third time in a row, as sticky loans kept on rising to alarming levels.
The bank had reported Rs 257 crore net profit for the year-ago period but faced losses in the last two quarters after the Reserve Bank of India's push to improve asset quality pushed the bank to report non-performing assets.
Shares of IOB tumbled 5.12 per cent to hit a low of Rs 25.90 on BSE. The bank had hit a 52-week low of Rs 21.10 in February this year. UCO Bank slipped 5.92 per cent to hit a low of Rs 40.20.
Net non-performing asset of UCO Bank rose to 10.04 per cent of gross advances at the end of June quarter against 4.53 per cent in the year-ago quarter. For IOB, gross NPA as a ratio of gross advances stood at an alarming 20.48 per cent at the end of the first quarter.
On Wednesday, IOB shares closed at Rs 26.35, down 3.48% while those of UCO closed 3.86% lower at Rs 41.10 apiece.
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