UCO Bank posts strong Q1 results, showing double-digit growth in business and profitability for FY2026-27

UCO Bank posts strong Q1 results, showing double-digit growth in business and profitability for FY2026-27​

UCO Bank reported robust performance for the quarter ending June 30, 2026, highlighting significant growth across its overall business, asset quality, and key operational metrics. The bank saw a substantial increase in total business, while simultaneously improving profit margins and maintaining strong balance sheet health.

As of June 30, 2026, the Bank's Total Business stood at Rs 6,05,083 Crore, marking a growth of 15.53% year-on-year (Y-o-Y). Gross Advances grew by 21.18% to reach Rs 2,72,768 Crore, while Total Deposits saw an increase of 11.28%, reaching Rs 3,32,315 Crore.

Capital and Deposit Growth​

The bank demonstrated healthy growth in its deposit portfolio. Total CASA (Current Account and Savings Account) stood at Rs 1,16,136 Crore as on June 30, 2026, reflecting a 12.34% Y-o-Y increase. This total consisted of Savings Deposits at Rs 1,00,870 Crore (up 11.78% Y-o-Y) and Current Deposits at Rs 15,266 Crore, which grew by 16.23% on a Y-o-Y basis. The CASA ratio stood at 36.94%.

Profitability Highlights​

The Bank maintained strong profitability across the quarter. Operating Profit for the quarter ended June 30, 2026, was Rs 2,810 Crore, reflecting a 79.84% growth compared to the previous year. Net profit stood at Rs 656 Crore, up from Rs 607 Crore in the same period of 2025, signifying an 8.05% increase on a Y-o-Y basis.

Key profitability metrics include:

• Net Interest Margin (NIM): Global NIM stood at 3.05%, with Domestic NIM at 3.24%. Both showed marginal improvement compared to the preceding year.
• Fee Income: Fee based income grew by 35.12% Y-o-Y, reaching Rs 505 Crore against Rs 374 Crore in the previous financial year.
• Efficiency: The Cost to Income ratio stood at 37.49%, and Return on Asset (ROA) was reported at 0.68%.

Advances Segment Performance​

The bank saw strong momentum in its retail and specialized lending segments:


The RAM (Retail, Agriculture & MSME) segment increased by 25.27% to Rs 1,57,745 Crore. This growth was powered by Retail advances rising 30.01%, Agriculture advances growing 30.01%, and MSME advances expanding by 18.79%.

Asset Quality and Balance Sheet Metrics​

Asset quality remained stable, with Gross Non-Performing Assets (NPA) decreasing by 55 basis points (bps) Y-o-Y to 2.08% as on June 30, 2026. Net NPA reduced by 20 bps Y-o-Y to 0.25%.

The Provision Coverage Ratio stood at 97.85%, with the Tangible PCR recorded at 88.08%. The Credit to Deposit Ratio was reported at 82.08% as on June 30, 2026, compared to 75.38% in the previous year. Capital Adequacy Ratio (CRAR) stood at 19.03%, with a Tier I Capital Ratio of 17.44%.

Operational Footprint​

In terms of operational efficiency, Business per employee improved to Rs 28.47 Crore as on June 30, 2026, up from Rs 24.64 Crore in the prior year. Similarly, Business per Branch increased to Rs 176.77 Crore, up from Rs 158.37 Crore a year earlier.

UCO Bank operates a network of 3,421 Domestic branches as of June 30, 2026, in addition to two overseas branches in Hong Kong and Singapore, and one Representative Office in Iran. Notably, 61 percent of its domestic branches are situated in Rural and Semi-Urban regions to support Financial Inclusion Programs.

UCOBANK Stock Price Movement​

On Wednesday, UCO Bank shares slipped by 1.15% to settle at ₹26.55, falling following a day of selling pressure. The stock recorded a trading volume of 4.16 million shares as it closed in the financial services sector.