Quarterly Financial Results
UCO Bank Q1 FY2026-27 Results: Operating Profit Surges 80%, Asset Quality Improves and Business Crosses ₹6 Lakh Crore
NSE
UCOBANK
BSE
532505
UCO Bank reported a strong operating performance for Q1 FY27, with operating profit rising nearly 80% YoY and net profit increasing 8.05% to ₹656 crore. The bank delivered healthy growth in advances and deposits, improved asset quality, higher net interest income, stronger capital adequacy, and continued expansion in its Retail, Agriculture & MSME (RAM) portfolio.
PRICE-SENSITIVE TRIGGER
Event: Announcement of Unaudited (Reviewed) Financial Results for the quarter ended June 30, 2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The bank delivered broad-based business growth, improved profitability, strengthened asset quality and maintained healthy capital buffers, reflecting continued improvement in operational performance.
Metrics:
Financial Highlights:
- Net Profit: ₹656 crore (▲8.05% YoY)
- Operating Profit: ₹2,810 crore (▲79.84% YoY)
- Net Interest Income (NII): ₹2,808 crore (▲16.86% YoY)
- Global Net Interest Margin (NIM): 3.05% (▲9 bps YoY)
- Domestic NIM: 3.24% (▲6 bps YoY)
- Cost-to-Income Ratio: 37.49%
- Return on Assets (ROA): 0.68%
- Fee-Based Income: ₹505 crore (▲35.12% YoY)
Business Growth:
- Total Business: ₹6,05,083 crore (▲15.53% YoY)
- Gross Advances: ₹2,72,768 crore (▲21.18% YoY)
- Total Deposits: ₹3,32,315 crore (▲11.28% YoY)
- CASA Deposits: ₹1,16,136 crore (▲12.34% YoY)
- CASA Ratio: 36.94%
- Credit-Deposit Ratio: 82.08%
Asset Quality & Capital:
- Gross NPA: 2.08% (improved by 55 bps YoY)
- Net NPA: 0.25% (improved by 20 bps YoY)
- Provision Coverage Ratio (PCR): 97.85%
- Capital Adequacy Ratio (CRAR): 19.03%
- Tier-I Capital Ratio: 17.44%
Segment Performance:
- Retail Advances: ₹71,549 crore (▲27.32% YoY)
- Agriculture Advances: ₹38,952 crore (▲30.01% YoY)
- MSME Advances: ₹47,244 crore (▲18.79% YoY)
- RAM Portfolio: ₹1,57,745 crore (▲25.27% YoY)
Highlight:
- Operating profit increased nearly 80% YoY while Gross NPA declined to 2.08%, reflecting stronger profitability and continued improvement in asset quality.
What Happened ?
UCO Bank reported steady earnings growth during Q1 FY27, supported by strong expansion in advances, higher net interest income and improved operational efficiency. Asset quality continued to strengthen with lower gross and net NPAs, while the bank maintained a robust capital position.
The bank also recorded healthy growth across its Retail, Agriculture and MSME portfolio, supported by sustained lending momentum and improved deposit mobilisation.
key details
Business & Operational Highlights:
- Total business crossed ₹6.05 lakh crore, growing 15.53% YoY.
- Advances increased 21.18% YoY, significantly outpacing deposit growth.
- Deposits rose 11.28% YoY, with CASA deposits growing 12.34%.
- RAM portfolio expanded 25.27% YoY, led by:
- Retail advances up 27.32%
- Agriculture advances up 30.01%
- MSME advances up 18.79%
- Net Interest Income grew 16.86% YoY.
- Cost of funds improved by 37 basis points to 4.36%.
- Provision Coverage Ratio remained strong at 97.85%.
- Business per employee increased to ₹28.47 crore.
- Business per branch improved to ₹176.77 crore.
- Domestic network stood at 3,421 branches, with 61% located in rural and semi-urban areas.
Why It Matters:
- The quarter reflects balanced growth across lending, deposits and profitability while maintaining disciplined asset quality. Strong capital adequacy and improving operational efficiency provide additional capacity to support future credit growth.
Risk Analysis
Summary:
- Although UCO Bank reported improving fundamentals, sustaining margins and maintaining asset quality amid a changing interest rate environment remain important factors for future performance.
Key Risks:
- Pressure on net interest margins if interest rates soften.
- Potential deterioration in asset quality during future credit cycles.
- Slower deposit mobilisation amid increasing competition.
- Credit demand moderation affecting loan growth.
- Regulatory and macroeconomic changes impacting banking operations.
Worst Case:
- A weakening credit environment or renewed stress in borrower repayments could increase NPAs and moderate profitability despite strong capital buffers.
Risk Level: Medium
Company Commentary
- UCO Bank highlighted continued improvement in profitability, business growth and operational efficiency during Q1 FY27.
- The bank reported sustained growth across Retail, Agriculture and MSME lending while maintaining healthy CASA growth.
- Management emphasized significant improvement in asset quality, supported by lower NPAs and a high provision coverage ratio.
- The bank continues to focus on balanced credit expansion, financial inclusion and strengthening operating efficiency.
Official Exchange Filing: UCO Bank Limited
