State-run United Commercial Bank may reduce its benchmark prime lending rate (BPLR) by 50 basis points twice (with each revision in the next two quarters of the current fiscal).

SK Goel, chairman and managing director, UCO Bank, said, "During the next two quarters, we would be shedding most of our high cost deposits which would bring down our fund costs and so we might bring down our lending rates also."

The benchmark prime lending rate of the bank is currently pegged at 12.25 percent.

The net interest margin (NIM) of the bank is expected to increase by 2.15 percent during this fiscal, based on decreased cost of fund, as explained by Goel.

The net profit of the bank rose to Rs 178.85 crore for the first quarter of current fiscal, which is an increase of 36 percent over the last fiscal when it was Rs 133.44 crore.

"The growth in profit was due to significant growth in treasury profits to Rs 85 crore in the quarter from Rs 30.5 crore a year ago and a 55 per cent growth in our fee-based income at Rs 252 crore," Goel added.

Founded in 1943, UCO Bank is a Government of India undertaking and headquartered in Kolkata. The Bank has 35 regional offices spread across the country.

The bank provides different loans for meeting needs of various segments including; home loans (UCO Shelter), car loans, education loans, personal loans (UCO Cash), and mortgage loans. The UCO earnest money deposit loan scheme avails earnest money for booking housing plots/flats.

The UCO Real Estate finances the capital needs of promoters/real estate developers.

The UCO Shopper is a special consumer loan that enables the borrowers to purchase consumer durables and two-wheelers on the borrowed amount.