State-owned UCO Bank on Friday (September 8) said it has raised its marginal cost of funds-based lending rate (MCLR) and treasury bill linked lending rates (TBLR) by 5 basis points (bps) across all tenures. However, the repo linked rate, base rate, and BPLR remain unchanged.

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This comes after the Reserve Bank of India (RBI) announced its decision to discontinue the Incremental Cash Reserve Ratio (I-CRR) in a phased manner.

The I-CRR, which was introduced as a temporary measure to manage surplus liquidity, required scheduled banks to maintain a 10 percent reserve on the increase in their net demand and time liabilities (NDTL) between May 19, 2023, and July 28, 2023.

The revised MCLR rate is effective from September 10, 2023, according to a stock exchange filing. The MCLR is the lowest interest rate at which a bank can make a loan to a customer.

"We inform you that the Bank’s Asset Liability Management Committee (ALCO) has reviewed the Benchmark rates and decided for revision in Marginal Cost of Fund-Based Lending Rate (MCLR) and Treasury Bill Linked Lending Rates (TBLR)," the lender said.

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The lender has raised overnight MCLR from 7.90 percent to 7.95 percent.

Source: UCO Bank

Meanwhile, one-month MCLR has been hiked from 8.10 percent to 8.15 percent, three-month MCLR from 8.25 percent to 8.30 percent, six-month MCLR from 8.50 percent to 8.55 percent and one-year MCLR has been raised from 8.65 percent to 8.70 percent, respectively.

Further, TBLR (three months) has been raised to 6.80 percent, TBLR (6 months) to 6.95 percent, and TBLR (12 months) to 7 percent.

The bank reported an 80.8 percent year-on-year (YoY) jump in net profit at Rs 223.5 crore for the first quarter that ended June 30, 2023. In the corresponding quarter last year, UCO Bank posted a net profit of Rs 124 crore.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 21.8 percent year-on-year to Rs 2,008.8 crore against Rs 1,649.6 crore.

The gross non-performing assets (GNPAs) stood at 4.48 percent in the June quarter against 4.78 percent in the March quarter. The net NPAs came at 1.18 percent against 1.29 percent quarter-on-quarter.

Shares of UCO Bank Ltd ended at Rs 35.08, up by Rs 0.66, or 1.92 percent, on the BSE.

(Edited by : Shoma Bhattacharjee)

First Published:Sept 8, 2023 7:13 PM IST