The bank's bad loans ratio remained fairly high, though significantly lower than last year, at 19.45 per cent of the gross loans at the end of December 2019, from 27.39 per cent in the year ago period.
Net NPAs halved to to 6.34 per cent from 12.48 per cent.
In value terms, the gross NPAs stood at Rs 22,139.65 crore, down from Rs 31,121.79 crore at December-end, 2018.
Net NPAs reduced to Rs 6,199.65 crore from Rs 11,755.61 crore.
Provisions for bad loans were trimmed to Rs 1,645.51 crore for the quarter under review, from Rs 2,243.85 crore a year ago.
However, the overall provisions and contingencies were higher for the quarter at Rs 2,170.69 crore, compared to Rs 1,399.56 crore.
The non-performing loans provisioning coverage ratio stood at 83.71 per cent as on December 31, 2019, UCO Bank said.
On divergence of bad loans during 2018-19, the lender said the net loss was adjusted to Rs 5,225.53 crore from the earlier reported Rs 4,321.09 crore.
The gross NPAs as on March 31, 2019 as reported by the bank was Rs 29,888.33 crore, while the RBI assessed it at Rs 31,105.75 crore, leading to a divergence of Rs 1,217.42 crore.
Net NPA divergence was of Rs 165.05 crore and the divergence on provisioning stood at Rs 1,390.17 crore.
"The bank has made full provision against said divergence as at December 31, 2019," it added.
Banks are mandated to report the divergence in case additional provisioning for NPAs assessed by RBI exceeds 10 per cent of the reported profit before provisions and contingencies.
For additional gross NPAs identified by RBI exceeding 15 per cent of the reported incremental gross NPAs, then too the banks are required to disclose divergence from prudential norms on income recognition, asset classification and provisioning.
Stock of UCO Bank jumped 5.65 per cent to close at Rs 15.90 on BSE.
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