UCO Bank shares slip 4% despite 86% rise in Q4 profit; here’s why
UCO Bank stock hit a low of Rs 29.46, down 4.01% in early trade. Market cap of the lender fell to Rs 35,975 crore.
- May 3, 2023,
- Updated May 3, 2023 9:59 AM IST
Shares of public sector lender UCO Bank slipped 4% in early trade today despite the lender reporting a 86.2 per cent rise in net profit for the quarter ended March 2023. Net profit rose to Rs 581.24 crore in Q4 on the back of a reduction in bad loans against a profit of Rs 312.18 crore in the January-March quarter of 2021-22.
In the current trading session, the UCO Bank stock opened flat at Rs 30.35. At 9:29 am, the banking share was trading 2.05% lower at Rs 30.09 on BSE. It hit a low of Rs 29.46, down 4.01% in early trade.
UCO Bank stock has fallen after six days of consecutive gain. In the last six sessions, the stock gained 16.76% from Rs 26.31 on April 21 to Rs 30.72 in the previous trading session. The stock which gained ahead of Q4 and fiscal earnings saw profit-booking today. Absence of dividend announcement for the last fiscal also turned sentiment negative around the stock.
In a year, the stock has zoomed 154.65% but lost 4.29% in 2023. Market cap of the lender fell to Rs 35,975 crore. On BSE, 3.32 lakh shares of the lender changed hands amounting to a turnover of Rs 98.84 lakh.
The shares of UCO Bank hit a 52-week high of Rs 38.15 on December 16, 2022 and a 52 week low of Rs 10.52 on June 20, 2022.
In terms of technicals, the relative strength index (RSI) of UCO Bank stands at 72.6, signaling it's overbought. UCO Bank stock has a one-year beta of 0.7, indicating low volatility during the period. UCO Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
In the last fiscal, UCO Bank logged its highest-ever net profit of Rs 1,862.34 crore in 2022-23 against Rs 929.76 crore in the preceding fiscal, clocking a nearly 100 per cent year-on-year growth, the Kolkata headquartered lender said.
Net interest income (NII) of Rs 7,343.13 crore during the year too was the bank’s highest ever.
The lender’s gross non-performing assets (NPA) in the fourth quarter declined to 4.78 per cent from 7.89 per cent a year ago.
Similarly, net NPAs too declined to 1.29 per cent in the January-March 2022-23 quarter from 2.7 per cent.
The lender reported a strong set of earnings in the December quarter.
In the third quarter of the last fiscal, UCO Bank reported a 110 per cent rise in profit to Rs 652.97 crore against Rs 310.39 crore in the corresponding quarter of the previous fiscal. Further, net profit for the three quarters that ended December rose to Rs 1,281 crore.
UCO Bank's net profits during Q3 and the first three-quarters of FY23 were the highest ever in the 80 years of the Bank's history, it said.
Also read: Titan Company shares flat ahead of Q4 results, dividend announcement. Earnings preview & more
Shares of public sector lender UCO Bank slipped 4% in early trade today despite the lender reporting a 86.2 per cent rise in net profit for the quarter ended March 2023. Net profit rose to Rs 581.24 crore in Q4 on the back of a reduction in bad loans against a profit of Rs 312.18 crore in the January-March quarter of 2021-22.
In the current trading session, the UCO Bank stock opened flat at Rs 30.35. At 9:29 am, the banking share was trading 2.05% lower at Rs 30.09 on BSE. It hit a low of Rs 29.46, down 4.01% in early trade.
UCO Bank stock has fallen after six days of consecutive gain. In the last six sessions, the stock gained 16.76% from Rs 26.31 on April 21 to Rs 30.72 in the previous trading session. The stock which gained ahead of Q4 and fiscal earnings saw profit-booking today. Absence of dividend announcement for the last fiscal also turned sentiment negative around the stock.
In a year, the stock has zoomed 154.65% but lost 4.29% in 2023. Market cap of the lender fell to Rs 35,975 crore. On BSE, 3.32 lakh shares of the lender changed hands amounting to a turnover of Rs 98.84 lakh.
The shares of UCO Bank hit a 52-week high of Rs 38.15 on December 16, 2022 and a 52 week low of Rs 10.52 on June 20, 2022.
In terms of technicals, the relative strength index (RSI) of UCO Bank stands at 72.6, signaling it's overbought. UCO Bank stock has a one-year beta of 0.7, indicating low volatility during the period. UCO Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
In the last fiscal, UCO Bank logged its highest-ever net profit of Rs 1,862.34 crore in 2022-23 against Rs 929.76 crore in the preceding fiscal, clocking a nearly 100 per cent year-on-year growth, the Kolkata headquartered lender said.
Net interest income (NII) of Rs 7,343.13 crore during the year too was the bank’s highest ever.
The lender’s gross non-performing assets (NPA) in the fourth quarter declined to 4.78 per cent from 7.89 per cent a year ago.
Similarly, net NPAs too declined to 1.29 per cent in the January-March 2022-23 quarter from 2.7 per cent.
The lender reported a strong set of earnings in the December quarter.
In the third quarter of the last fiscal, UCO Bank reported a 110 per cent rise in profit to Rs 652.97 crore against Rs 310.39 crore in the corresponding quarter of the previous fiscal. Further, net profit for the three quarters that ended December rose to Rs 1,281 crore.
UCO Bank's net profits during Q3 and the first three-quarters of FY23 were the highest ever in the 80 years of the Bank's history, it said.
Also read: Titan Company shares flat ahead of Q4 results, dividend announcement. Earnings preview & more