UCO Bank target is to grow operating profit by 15% this financial year: MD
Ashwani Kumar, MD & CEO, UCO Bank, says “our target is to grow operating profit by 15% during this financial year and on a year-on-year basis and profit after tax is a play of provisions and going forward looking at the PCR, we are having around 94-95% PCR and our net NPA is already 1.19% and the provisioning requirements on a quarter-on-quarter basis, on year-on-year basis will come down. Our gross NPA is also coming down. It has come down to 4.48% this quarter and we will continue to see the declining trend in the remaining quarters as well and with all this in place, the ROA will improve in the coming quarters.”There is a section of the market which believes that the last few quarters of credit growth have been very strong. From here on, on the one hand, yes, there is festive season where credit generally perks up but the trend would be smoothening out. Is that a trend you see developing or do you see good growth on the credit side for next four to six quarters from current levels as well?
First of all, I will give you a brief data point.
Inflation data shows inflation is coming down. GDP numbers are growing. Our PMI, even services, even manufacturing, is in expansion mode.
E-way bill and all high frequency indicators are indicating growth. Our consumption story is good. I believe that based on these numbers going ahead, the credit growth will continue to have a good momentum as we go ahead in this financial year and going forward also the way the government is supporting growth, the government is coming out with so many projects in the infrastructure story, so the credit growth will continue to be good in the coming months as well and coming years as well.
Tell me about the return on asset ratio trend as well. It has
