UCO Bank Q1FY26 profit up 10% YoY to Rs 607 cr, asset quality improves; strong growth in retail and MSME lending
Kolkata: UCO Bank reported a 10.16% year-on-year (YoY) rise in net profit to ₹607 crore for the April–June quarter of FY26, driven by strong traction in its retail, agriculture, and MSME (RAM) loan book and a notable improvement in asset quality.
The public sector lender’s operating profit rose 18.24% YoY to ₹1,562 crore in Q1FY26.
Total business grew 13.51% YoY to ₹5.24 lakh crore, backed by a 16.48% jump in gross advances to ₹2.25 lakh crore and an 11.37% rise in deposits to ₹2.99 lakh crore.
The RAM portfolio expanded by 23.47% to ₹1.26 lakh crore, with retail advances rising sharply by 30.73%, supported by growth in home and vehicle loans—up 17.92% and a striking 66.94% YoY, respectively.
The MSME segment also showed a healthy 20.33% increase, while agriculture loans were up 15.46%.
The bank’s credit-deposit ratio stood at 75.38%, and business per employee rose to ₹24.64 crore from ₹21.65 crore a year ago.
UCO Bank’s asset quality continued to strengthen.
Gross non-performing assets (NPA) declined 69 basis points YoY to 2.63%, while net NPA dropped to 0.45%, down 33 bps from last year. Provision coverage remained high at 96.88%.
Net interest income (NII) for the quarter increased 6.61% to ₹2,403 crore, while the global net interest margin stood at 2.96%, and the domestic margin at 3.18%.
Capital adequacy remained robust with CRAR at 18.39%, including Tier-I capital of 16.36%.
The bank also highlighted recognition in digital banking performance, securing second position for digital payments in FY25 and a runner-up rank in the EASE 7.0 reforms index for top improvers.
As of June 30, 2025, UCO Bank operated 3,305 domestic branches, 2 overseas branches (Hong Kong and Singapore), and a representative office in Iran, with over 16,800 customer touchpoints across India.
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