This is against the operating loss of Rs 73 crore incurred by the public sector bank in 1996-97. The turnaround of the bank is part of a three-year strategic revival plan and the memorandum of understanding signed between the management and the union in May 1997.

During the year the bank deposit increased by 18.25 per cent to Rs 11,840 crore and the net bank credit went up to Rs 5,230 crore. ``The credit growth for the bank was 16 per cent as against the average growth for the banking industry at 15.5 per cent. The net NPA too has come down to 11.14 per cent,'' said B Venkataraman, General Manager, UCO Bank.

The bank made a concerted effort to bring down the huge Non-Performing Asset. As part of the revival plan, the bank is focusing on plugging the leakages by introducing revenue audit and concurrent audit.``Improved thrust on recovery to reduce NPA is another strategy. The reduction in NPA will not only help the bank to write back the provision made earlier but the asset will start earning interest also.'', said Venkataraman. The NPA has been brought down by Rs 270 crore. Another plan of the bank is to fully utilise the manpower to do better business. The target is to reduce the NPA by Rs 300 crore next year.

The bank has been burdened with the poor recovery of priority sector and other advances in the Eastern region. The crisis facing the jute industry which was a sunrise industry a few decades ago and a host of other factors affected the level of NPA for the bank. The Government of India infused a capital of Rs 350 crore into the bank in February 1997 and currently the sick bank has achieved a capital adequacy ratio of 9%.