Uco Bank gets Rs 14,000 crore windfall from Iran oil payment right

KOLKATA: The special payment mechanism for importing crude from Iran has provided state-run Uco BankNSE 4.34 % about Rs 13000- 14000-crore windfall, helping the stressed lender a new lease of life.

The bank expects this interest free floating fund to boost its income but reversing the trend of continuous quarterly losses would also depend on the lender’s ability to contain and recover bad loans. Uco reported losses for the past thirteenth quarters at a stretch.

The floating fund bonanza may also be truncated in the future as Uco lost its exclusive right as the designated payment bank for Iran oil imports with the government also offering IDBI BankNSE 0.47 % a similar status.