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UCO Bank Q3 FY26: Net Profit Rises 15.65% to ₹739 Cr; Asset Quality Improves Significantly
UCO Bank reported a strong Q3 FY26 performance with a 15.65% y-o-y increase in net profit to ₹739 crore and a 16.74% growth in advances. Asset quality showed marked improvement as Gross NPA fell to 2.41% and Net NPA reached a low of 0.36%, supported by a high Provision Coverage Ratio of 97.32%. The bank has proactively built an ECL provision buffer of ₹1,252 crore, covering nearly 50% of its estimated future requirements. Management maintains a conservative credit growth guidance of 12-14% despite current outperformance in the RAM segment.
Key Highlights
Net Profit grew 15.65% y-o-y to ₹739 crore; Operating Profit rose 6% to ₹1,680 crore.
Advances grew 16.74% y-o-y, driven by a 25.86% surge in the RAM (Retail, Agri, MSME) segment.
Asset quality improved with GNPA at 2.41% and NNPA at 0.36%, while PCR stands strong at 97.32%.
Global NIM improved to 3.08% from 3.03% sequentially; Domestic NIM stood at 3.27%.
Capital Adequacy Ratio remains robust at 17.43% (18.67% including 9-month profits).
💼 Action for Investors
Investors should note the bank's consistent improvement in NIMs and asset quality as signs of structural strength. The proactive ECL provisioning reduces future earnings volatility, making the stock a stable prospect in the PSU banking sector.