Uco Bank on Friday reported a net profit of Rs 402 crore for the quarter ended September 30, down 20.39 per cent from Rs 505 crore in the corresponding quarter of the previous year.

Net interest income of the bank grew 8.30 per cent during the quarter to Rs 1,917 crore from Rs 1,770 crore a year ago.

Treasury income fell 65.57 per cent during the quarter, which pulled down the bottomline despite the improvement in asset quality.

“Treasury income has come down from Rs 163 crore (in Q2FY23) to Rs 57 crore as there was mark-to-market loss due to increase in yield during the quarter,” the bank’s managing director and CEO Ashwani Kumar said.

Responding to a query from The Telegraph, Kumar said that the bank has decided to improve its CD (credit-deposit) ratio to around 75-76 per cent in line with the peer banks from its current level of 67.25 per cent.

Utilising excess SLR instead of aggressively pricing deposits is a favoured route to support credit expansion.

Gross NPA ratio of Uco Bank during the quarter was 4.14 per cent compared with 6.58 per cent a year ago.