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Comparative Study on Home Loan

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No major restructuring, to focus on retail advances this year: UCO Bank chief

New Delhi:

Public sector lender, UCO Bank, has reported a 12 per cent growth in its net profit to Rs.2.53 billion (Rs. 252.84 crore) during the quarter ended March 31, 2012, from Rs. 2.26 billion (Rs. 225.9 crore) in the same period last year.

S Chandrasekharan, executive director, UCO Bank, told NDTV Profit that the bank was not planning to take up any major restructuring this year. “Our focus of the year is going to be retail advances,” he said.
Profit this time has been lower than expectations, falling 23 per cent sequentially. What led to the same? Yes. The pressures were mainly because of the slippages. We expect around Rs. 840 crore this quarter, and otherwise if you see year-on-year profit, it is much higher than what it was. We could make 22.3 per cent year-on-year from Rs. 907 crore last year to Rs. 1109 crore this year. Only on quarter-to-quarter, the profit has come down.
Credit and deposit growth have been a bit sluggish, and consequently your loan-to-deposit ratio (LD ratio) has inched up. Any pressure you are facing on funding side? No. There is no pressure on us. We took a conscious decision of not accepting bulk deposits this year. The deposit growth as per the industry is 6 per cent. We even did not take any bulk deposit last year as there was a 32 per cent growth in bulk deposits this year (This doesn’t read right. Last year…this year…). The credit (deposit) has gone up to about 16 to 17 per cent. We don’t see any pressure on liquidity.
How were the net interest margins (NIMs) during the quarter? Your current and savings account ratio (CASA) dropped in the third quarter. This time how did it pan out? The CASA has improved as compared to last year and one good thing is that this year, we have opened around 17 lakh new accounts and we expect growth…...

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