Public sector lender Uco Bank on Monday reported a 147.09 per cent growth in net profit for the quarter ended June 30 on the back of improvement in interest and non-interest income.

Net profit during the quarter was at ₹551 crore compared with ₹223 crore in the corresponding previous period.

Net interest income during the quarter was at ₹2,254 crore, up 12.20 per cent from ₹2,009 crore in the corresponding quarter of the previous year.

Non-interest income, comprising fee-based and treasury income and recovery in written off accounts during the quarter was at ₹835 crore, up 31.91 per cent from ₹633 crore in the year-ago period.

The bank’s domestic NIM was at 3.29 per cent during the quarter compared with 3.03 per cent in the year-ago period.

The bank’s cost of funds during the quarter was at 4.79 per cent, marginally lower from 4.83 per cent in March, but up from 4.33 per cent for the June 2023 quarter. Gross NPA ratio during the quarter was 3.32 per cent compared with 4.48 per cent a year ago.

“Our NIM has improved this quarter over the previous year. Cost of deposit has come down compared with the previous quarter. Cost of funds remains at the same level over March. Non-interest income has also improved over the previous year. All these factors contributed to the growth in net profit,” said Ashwani Kumar, MD and CEO of Uco Bank.

Kumar said despite the bank not being aggressive on deposits, it has been able to clock a 7 per cent growth.

“We have given a guidance of 8-10 per cent growth in deposits and 12-14 per cent in advances. We continue to maintain that and with this we will be able to achieve 75 per cent CD ratio. We don’t want to raise funds when we are not able to utilise or deploy them profitably,” Kumar said.

“For NIM, we have given a guidance of 2.9-3 per cent and we will continue to maintain the guidance at around 3 only. The pressure on deposit interest rate will continue till the time some rate cut is announced,” he added.