Four more foreign lenders approach Uco Bank for opening special Rupee Vostro Accounts
Uco Bank for opening special rupee vostro accounts for facilitating bilateral trade in local currency, Uco Bank managing director Ashwani Kumar said Friday, after announcing 81% year-on-year in June quarter net profit at Rs 224 crore. Two of these banks are from Russia, he said. «We will soon approach the Reserve Bank of India for approval,» he said.
Uco has already opened rupee vostro accounts for four Russian banks while it received regulatory approval for opening accounts for eight more overseas banks including six from Russia. The RBI has allowed banks from 22 countries to open special rupee vostro accounts with Indian banks in its effort to make rupee internationally accepted. Meanwhile, Uco Bank reported a 173% jump in operating profit at Rs 1202 crore against Rs 440 crore in the year ago period.
The rise in net profit was despite a 3.5 fold rise in provisions and contingencies at Rs 856 crore. Its net interest income rose 22% at Rs 2009 crore. Net interest margin (NIM) improved to 2.86% as against 2.74%.
The bank's advance rose by a quarter to Rs.1.64 lakh crore at the end of June. Gross non-performing assets ratio fell to 4.48% from 7.42% a year back. Net NPA was at 1.18% against 2.49%.
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