Uco Bank expects 33.4% FY2011 profit surge

Lender expects $289mln FY11 net profit driven by credit growth from large and mid-corporate sector.

State-run lender, Uco Bank expects to post a net profit of 13.5 billion rupees ($289.3 million) in FY11, Executive Director Ajai Kumar said at a shareholders meeting.

"During 2009-10 our net profit stood at 10.12 billion rupees ($216.83 million), and going by the present trend, our net profit should be at around 13.5 billion rupees ($289.3 million) in FY11, he said, a jump of 33.4 per cent.

The bank expects its April-June credit and deposit growth at 19 percent, while the net interest margin is expected to be around 2.6 per cent, he said.

"The credit growth has been mainly driven by large and mid-corporate sector, but our thrust area, going forward, will be the retail sector."

Referring to the follow-on-public offer (FPO) of the bank, he said that the bank is not in a hurry to hit the market as it is waiting for the fund infusion from the federal government.

"We have requested for 13 billion rupees ($278.51 million) from the government through perpetual non-cumulative preference shares (PNCPS), as Tier-I capital, for the current financial year. Of this we are expecting 3.75 billion rupees ($80.34 million) anytime," Kumar said.

View the full story in the Economic Times.