Coming out of the Reserve Bank of India’s stringent Prompt Corrective Action Framework, and COVID-19 situation, UCO Bank will now focus on consistent and qualitative growth, MD and CEO Soma Sankara Prasad said on Saturday.
“The bank has been earning profits quarter after quarter. We have a 14.56% capital adequacy ratio (bank’s capital with respect to risk exposures) as against the prescribed 11.5%, and the present provision coverage ratio (funds kept aside to cover loan losses) is 91.3%,” he said.
UCO Bank was kept under PCAF by RBI in May 2017 for breach of PCA parameters such as capital, asset quality and leverage, and only in September last year, its performance was reviewed and taken out of the restrictions.
Mr. Prasad, while speaking to the media here, explained the growth plans and strategy for challenges. He said the bank would focus on retail business and prioritise financing under the Centre’s Agricultural Infrastructure Fund.
Starting April, the Kolkata-based lender proposes to add 200 more branches to about 3,000-branch network in the country, as part of its ‘phygital approach’ (physical branches and digital penetration through applications).
Mr. Prasad also observed that the housing market witnessed a growth in the post-COVID scenario, and believed that UCO Bank’s improved turnaround time and cheaper home loan interest rate at 6.5%, while the largest lender State Bank of India’s rate at 6.7%, would attract home buyers.
“Our very comprehensive mobile banking application is one of the best rated digital tools in the market. Our workforce average age is 35, while the majority players’ is around 45. Also, there is no negative activism in the bank, like it was 10 years ago,” he said, seeing a “bright future”.
For challenges, Mr. Prasad said the bank would focus on qualitative growth by motivating its staff, increasing its operating profit, market share and credit rating.
