UCO Bank on Monday reported a nearly nine-fold jump in its net profit to Rs 310.39 crore for the third quarter, compared with Rs 35.44 crore in the same period last fiscal, on the back of an increase in the operating profit and fall in provisions.

The lender had registered Rs 205.39-crore net profit for the second quarter of this fiscal. During the third quarter, the asset quality improved as gross non-performing assets (NPAs) in absolute terms fell 7.95% quarter-on-quarter (QoQ) to Rs 10,042.41 crore from Rs 10,909.79 crore. On a year-on-year basis, gross NPAs decreased 12.22% from Rs 11,440.47 crore for the third quarter last fiscal, according to a stock exchange filing.

Soma Sankara Prasad, newly appointed MD and CEO, said total slippages for the December quarter stood at Rs 579 crore. During the quarter, cash recovery and upgradation were Rs 363 crore and Rs 191 crore, respectively.

“Around Rs 300-400 crore is the expected slippages in the agriculture segment in the March quarter. We want to contain it. All our branch managers are working on ensuring the renewal of KCC (Kisan Credit Card) accounts so that there is no slippage,” Prasad said.

During Q3, gross NPA as a percentage of total loans fell 98 bps sequentially to 8% from 8.98%. The net NPA ratio decreased 56 bps sequentially to 2.81%.