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Shares of UCO Bank are among today's top losers. Know why

Shares of UCO Bank are among today's top losers. Know why
Stock Market1 min read

Shares of UCO Bank Ltd., 72.8 percent controlled by the government, were among the top losers in the futures and options space after the bank announced a dismal set of numbers mainly on account of a rise in bad assets.

UCO Bank said its first quarter net profit halved to 256.7 crore rupees compared with 521.6 crore rupees in the same quarter a year ago. The bank's Net Interest Income fell 7.5 percent to 1,370.6 crore rupees during April-June versus 1,483.1 crore rupees in the year ago period.

UCO Bank said its Gross Non performing Assets soared to 7.30 percent of advances against 4.31 percent a year ago and its Net Non Performing Assets jumped up to 4.55 percent in the first quarter compared with 2.33 percent in the same quarter a year ago.

UCO Bank dropped 2.5 percent, or 1.4 rupees, to 53.15 rupees on the National Stock Exchange. Its futures showed a build up of short positions accompanied by a drop in prices.

UCO Bank's market capitalisation has plunged 44 percent in the past one year to 5,711 crore rupees as investors went bearish on PSU banks owing to a slowdown in the economy and rising non performing assets in major industries such as Steel, Infrastructure and power.

Image credit: Indiatimes

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