UCO Bank (UCOBANK)
₹23.73 +0.72% last close, 16 Oct
Q2 FY27 results
UCO Bank reported Q2 FY27 results on 15 Oct 2026: net interest income ₹2,886 Cr (+14.0% year on year, +2.8% on the previous quarter), and net profit ₹786 Cr (+26.8% year on year).
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹2,886 | +14.0% | +2.8% |
| Operating profit | ₹1,872 | +16.1% | -33.4% |
| Net profit | ₹786 | +26.8% | +19.8% |
| EPS (₹) | 0.63 | +28.6% | — |
| Gross NPA | 1.96% | — | — |
- Profit +13% above its own trend
- Gross NPA down 60 bps YoY
Against its own trend: net profit of ₹786 Cr was +13.3% against the ₹693 Cr its recent growth pointed to (above trend). This is a statistical baseline, not an analyst estimate.
Share price since the results: -1.0% (close before the filing to the latest close).
UCOBANK delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 22.78% of the UCOBANK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 42.29%. That is lower than usual for this stock.
Delivery in the last 5 sessions: 41.0% · 42.8% · 35.1% · 19.5% · 22.8%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
UCO Bank reported its Q2 FY27 earnings conference call transcript, highlighting a 26.77% YoY increase in net profit to ₹786 crore compared to ₹620 crore in Q2 FY26. Total business grew 18.81% YoY to ₹6,37,280 crore, driven by a 24.70% YoY surge in gross advances to ₹2,87,690 crore. Asset quality showed solid improvement as the Gross NPA ratio dropped 60 bps YoY to 1.96% and Net NPA decreased to 0.18%. Management also noted prudent provisions, including ₹570 crore in forward-looking ECL-related provisions, while keeping the slippage ratio at 0.85%.
- Q2 FY27 net profit grew 26.77% YoY to ₹786 crore, with operating profit up 16.04% to ₹1,872 crore.
- Global advances grew 24.70% YoY to ₹2,87,690 crore, led by a 26.92% expansion in the RAM portfolio to ₹1,68,736 crore.
- Asset quality improved with GNPA at 1.96% (down 60 bps YoY) and NNPA at 0.18% (down 25 bps YoY).
- Global NIM stood at 3.00% (domestic NIM at 3.19%), while cost-to-income ratio came in at 50.39%.
- Provision coverage ratio (including TWO) reached 98.36%, alongside ₹570 crore in ECL-related provisions.
UCO Bank reported a 26.77% YoY increase in net profit to ₹786 crore for Q2 FY27, up from ₹620 crore in Q2 FY26. Total business expanded 18.81% YoY to ₹6,37,280 crore, led by a 24.70% surge in gross advances to ₹2,87,690 crore. Asset quality improved significantly with Gross NPA dropping 60 bps YoY to 1.96% and Net NPA falling to 0.18%. Global Net Interest Margin (NIM) expanded by 10 bps YoY to 3.00%, while Net Interest Income grew 13.96% YoY to ₹2,886 crore.
- Net profit grew 26.77% YoY to ₹786 crore for Q2 FY27
- Gross NPA declined 60 bps YoY to 1.96%; Net NPA reduced 25 bps YoY to 0.18%
- Net Interest Income rose 13.96% YoY to ₹2,886 crore with Global NIM at 3.00%
- Gross advances grew 24.70% YoY to ₹2,87,690 crore, driven by 26.92% growth in RAM advances
- Provision Coverage Ratio stood at 98.36% and CRAR remained robust at 18.85%
UCO Bank released its investor presentation for Q2 FY27 (ended September 30, 2026), reporting a 26.77% YoY increase in Net Profit to ₹786 Cr alongside a 16.04% YoY growth in Operating Profit to ₹1,872 Cr. Net Interest Income (NII) improved 13.96% YoY to ₹2,886 Cr. Asset quality strengthened significantly with Gross NPA dropping 60 bps YoY to 1.96% and Net NPA falling 25 bps YoY to 0.18%. Total business crossed ₹6.37 lakh Cr, driven by a 24.70% YoY surge in gross advances and a 14.36% YoY growth in deposits.
- Q2 FY27 Net Profit rose 26.77% YoY to ₹786 Cr from ₹620 Cr in the year-ago period
- Net Interest Income (NII) grew 13.96% YoY to ₹2,886 Cr, with Global NIM standing at 3.00%
- Gross NPA reduced 60 bps YoY to 1.96% and Net NPA improved 25 bps YoY to 0.18%
- Global advances increased 24.70% YoY to ₹2,87,690 Cr, beating guidance of 12-14%
- Total deposits grew 14.36% YoY to ₹3,49,590 Cr, with domestic CASA ratio at 36.77%
UCO Bank reported its Q2 results (quarter ended 30 September 2026), posting a net profit of ₹785.64 Cr compared to ₹619.76 Cr in the year-ago period, marking a 26.8% YoY growth. Total income rose to ₹8,174.08 Cr from ₹7,421.39 Cr YoY, supported by an increase in interest earned to ₹7,286.12 Cr. Asset quality improved substantially, with Gross NPA dropping to 1.96% (vs 2.56% YoY) and Net NPA falling to 0.18% (vs 0.43% YoY). The Capital Adequacy Ratio (Basel III) stood at a solid 18.85%, while Return on Assets (annualised) was reported at 0.80%.
- Net Profit for Q2 grew 26.8% YoY to ₹785.64 Cr compared to ₹619.76 Cr in Q2 of the previous year
- Gross NPA reduced to 1.96% from 2.56% YoY; Net NPA improved to 0.18% from 0.43% YoY
- Total Income increased to ₹8,174.08 Cr, driven by ₹7,286.12 Cr in interest earned
- Capital Adequacy Ratio (Basel III) remained robust at 18.85% with CET-1 at 17.06%
- Annualised Return on Assets (RoA) reached 0.80% vs 0.71% in the prior year's corresponding quarter
India Ratings & Research Pvt Ltd. has reaffirmed UCO Bank's Long-term Issuer Rating and Basel III Tier II Bond Rating at 'AA/Stable' on October 9, 2026. The reaffirmation covers an aggregate amount of Rs 1,500 crore across four ISIN instruments. The rated amount of Rs 1,500 crore represents approximately 4.5% of the bank's net worth of Rs 33,250 crore. The outlook remains Stable, reflecting ongoing capital adequacy and credit stability without changes in borrowing status.
- Credit rating reaffirmed at 'AA' with a 'Stable' outlook by India Ratings & Research
- Total rated instrument amount stands at Rs 1,500 crore
- Applies to Basel III Tier II Bonds across ISINs INE691A08054, INE691A08062, INE691A08070, and INE691A08088
- Rated amount constitutes ~4.5% of net worth (Rs 33,250 crore) and ~5.1% of TTM revenue (Rs 29,474 crore)
UCO Bank reported provisional business figures for the quarter ended September 30, 2026, with total business reaching ₹6.37 lakh crore, up 18.84% YoY from ₹5.36 lakh crore. Total advances grew strongly by 24.68% YoY to ₹2.88 lakh crore, while domestic advances jumped 25.98% YoY to ₹2.57 lakh crore. Total deposits expanded at a slower pace of 14.05% YoY to ₹3.49 lakh crore (domestic deposits up 14.48% to ₹3.32 lakh crore). Consequently, the Credit-Deposit (CD) ratio climbed to 82.37%, up from 75.47% as of September 30, 2025.
- Total business rose 18.84% YoY to ₹6.37 lakh crore as of September 30, 2026
- Total advances surged 24.68% YoY to ₹2.88 lakh crore (domestic up 25.98% to ₹2.57 lakh crore)
- Total deposits grew 14.05% YoY to ₹3.49 lakh crore (domestic up 14.48% to ₹3.32 lakh crore)
- CD ratio elevated to 82.37% vs 75.47% YoY (and 82.08% as of June 30, 2026)
UCO Bank has received a notice of strike from the United Forum of Bank Unions (UFBU) representing seven constituent unions and associations. The proposed strike schedule includes 11 September 2026, 28 to 30 September 2026, and an indefinite continuous strike starting 26 October 2026. The bank stated that it has taken measures to ensure operational continuity, though branch and office services may face disruptions if the strike occurs.
- UFBU serves notice on behalf of 7 constituent unions including AIBEA, AIBOC, and NCBE
- First proposed strike day scheduled for 11 September 2026
- Three-day strike planned from 28 September 2026 to 30 September 2026
- Continuous strike threatened starting from 26 October 2026
- Bank taking steps to ensure business continuity across its operations
UCO Bank's Asset Liability Management Committee (ALCO) has reviewed and revised select benchmark rates effective September 7, 2026. While MCLR rates across all tenors (including 1-year MCLR at 8.80%) remain unchanged, 6-month and 12-month Treasury Bill Linked Rates (TBLR) were increased by 5 bps to 5.55% and 5.70%, respectively. Additionally, 1-year G-Sec linked rates rose by 8 bps to 5.88% and 10-year G-Sec par yield increased by 13 bps to 7.09%. Repo Linked Rates (UCO Float at 8.05%), Base Rate (9.60%), and BPLR (14.25%) remained unaltered.
- 1-year MCLR held steady at 8.80% and overnight MCLR unchanged at 7.90%
- 6-month and 12-month TBLR increased by 5 bps to 5.55% and 5.70% respectively
- 1-year UCO G-Sec rate raised by 8 bps from 5.80% to 5.88%
- 10-year G-Sec annualized par yield increased by 13 bps from 6.96% to 7.09%
- Repo-linked lending rates (UCO Float 8.05%, UCO Prime 5.25%) and Base Rate (9.60%) unchanged
The Ministry of Finance, Government of India, has extended the additional charge of Managing Director & Chief Executive Officer (MD & CEO) assigned to Executive Director Shri Rajendra Kumar Saboo. The extension is for a period of three months beyond August 31, 2026, until November 30, 2026, or until a regular incumbent is appointed, whichever is earlier. Shri Saboo was previously assigned the additional charge on June 19, 2026.
- Additional charge of MD & CEO extended by 3 months beyond August 31, 2026.
- Extension is valid up to November 30, 2026, or until a regular MD & CEO is appointed.
- The additional charge is held by Executive Director Shri Rajendra Kumar Saboo.
- Ministry of Finance communication dated August 25, 2026 conveyed the approval.
UCO Bank's Board of Directors has approved raising foreign currency funds up to USD 1.00 Billion (approximately ₹8,300+ Cr) in one or more tranches. The fundraise will be executed through debt instruments issued under a Medium Term Note (MTN) Programme. Relative to the bank's market cap of ₹31,443 Cr and net worth of ₹33,250 Cr, this authorization is sizeable (representing roughly 25-27% of net worth). The proceeds are expected to bolster foreign currency liquidity and support overseas business and credit growth.
- Board approved foreign currency fundraise of up to USD 1.00 Billion
- Issuance will be in one or more tranches via debt instruments under an MTN Programme
- Board meeting was conducted and concluded on August 24, 2026 (from 02:45 P.M. to 04:50 P.M.)
- Follows initial intimation letter dated August 19, 2026
UCO Bank has announced the appointment of Shri Manohar Lal Paliwal as a Part-time Non-Official Director, effective August 12, 2026. The appointment was made by the Central Government for a tenure of three years. Mr. Paliwal is a Chartered Accountant with a background in agriculture and petroleum retail. This is a routine administrative update to the board of this Public Sector Bank, where the government maintains a 91.0% stake.
- Appointment effective from August 12, 2026, for a period of 3 years.
- Shri Manohar Lal Paliwal is a Chartered Accountant and Commerce Graduate.
- The appointment is a nomination by the Central Government under the Banking Companies Act.
- UCO Bank currently maintains a high promoter (Government) holding of 91.0%.
- The bank's RAM segment (Retail, Agri, MSME) constitutes 65.23% of total advances as per recent context.
UCO Bank has updated its benchmark lending and reference rates effective August 7, 2026. While the Marginal Cost of Funds Based Lending Rate (MCLR) remains unchanged across all tenors (1-year at 8.80%), the bank has reduced the 12-month Treasury Bill Linked Rate (TBLR) by 15 basis points to 5.65%. Conversely, the 1-year G-Sec linked rate was increased by 23 basis points to 5.80%. These adjustments are routine actions by the bank's Asset Liability Management Committee (ALCO) to align with market yields.
- 1-year MCLR remains unchanged at 8.80% as of August 7, 2026
- 12-month TBLR reduced by 15 basis points from 5.80% to 5.65%
- 1-year UCO G-Sec Rate increased by 23 basis points from 5.57% to 5.80%
- 10-year G-Sec Rate (Par yield) adjusted upwards to 6.96% from 6.85%
- Repo Linked Rates (UCO Float at 8.05%) and Base Rate (9.60%) remain unchanged
Infomerics Valuations & Research has reaffirmed UCO Bank's issuer rating at 'AA' and its Basel III Additional Tier I (AT I) bonds at 'AA-', both maintaining a 'Positive' outlook. The rating applies to a total AT I bond limit of Rs 1,000 crore, of which the bank has currently utilized Rs 500 crore. This reaffirmation underscores the bank's stable credit profile, supported by its significant government ownership (91%) and a net worth of Rs 33,250 crore. The 'Positive' outlook indicates the potential for a future upgrade if the bank continues to improve its asset quality and profitability metrics.
- Issuer Rating reaffirmed at 'AA' with a 'Positive' outlook by Infomerics.
- Basel III AT I Bonds rating reaffirmed at 'AA-/Positive'.
- Total rated amount for AT I bonds stands at Rs 1,000 crore.
- Actual utilization of the rated AT I bonds is Rs 500 crore as of the reporting date.
- Bank maintains a high promoter (Government of India) holding of 90.95%.
UCO Bank reported strong operational performance for Q1 FY27, with credit growth of 21.18% YoY significantly exceeding its 12-14% guidance. Operating profit surged 79.8% to ₹2,810 Cr, bolstered by a ₹1,018 Cr recovery from written-off accounts. However, net profit growth was muted at 8% (₹656 Cr) due to a one-time ₹1,237 Cr DTA charge following a transition to the new tax regime. Asset quality improved significantly with GNPA dropping to 2.08% and a high Provision Coverage Ratio of 97.85%.
- Global advances grew 21.18% YoY to ₹2,72,768 Cr, significantly beating the management guidance of 12-14%
- Operating profit increased 79.8% YoY to ₹2,810 Cr, aided by a substantial ₹1,018 Cr recovery from Technical Write-Off (TWO) accounts
- Net profit stood at ₹656 Cr, impacted by a one-time non-cash DTA remeasurement charge of ₹1,237 Cr due to moving to the new tax regime
- Asset quality improved with GNPA at 2.08% (down 55 bps YoY) and NNPA at 0.25% (down 20 bps YoY)
- CASA deposits grew 12.34% YoY to ₹1,16,136 Cr, maintaining a CASA ratio of 36.94%
Fitch Ratings has assigned UCO Bank a first-time Long-Term Issuer Default Rating (IDR) of 'BBB-' with a Stable Outlook, equalizing it with India's sovereign rating. This investment-grade rating is primarily driven by the Government of India's 91% ownership and the high probability of extraordinary state support. The bank's financial profile has strengthened, with the impaired-loan ratio improving to 2.2% in FY26 and a robust CET1 ratio of 16.4%. While loan growth was high at 19.5% in FY26, management expects a normalization to 12-14% in FY27.
- Assigned first-time 'BBB-' Long-Term IDR and 'F3' Short-Term IDR by Fitch Ratings.
- Impaired-loan ratio improved to 2.2% in FY26 from 2.7% in FY25, with 88% loan loss coverage.
- Common Equity Tier 1 (CET1) ratio stands at 16.4% as of FY26, among the highest in the PSU bank peer group.
- Loan growth reached 19.5% in FY26, though management targets a lower 12-14% range for FY27.
- The bank maintains a 1.2% market share of system loans and deposits with a 36% CASA ratio as of FYE26.
Financial Performance
Revenue Growth by Segment
Total income reached INR 29,474 Cr in FY25. In Q2 FY26, Net Interest Income (NII) grew by 10.08% YoY, while fee-based income grew by over 10% QoQ. Credit growth was led by the RAM (Retail, Agri, MSME) segment which grew 22.87% YoY, specifically driven by a 72.87% surge in vehicle loans and 18.94% in housing loans. MSME and Agriculture segments grew by 23.8% and 17.28% respectively.
Geographic Revenue Split
Operations are highly concentrated in the Eastern and Northern parts of India, which account for approximately 56% of the total 3,305 branches. Additionally, 61% of branches are located in rural and semi-urban areas. The bank also maintains an international presence with 2 branches in Hong Kong and Singapore and 1 representative office in Iran.
Profitability Margins
Global Net Interest Margin (NIM) stood at 2.90% and Domestic NIM at 3.08% for Q2 FY26. Net Profit for Q2 FY26 was INR 620 Cr, representing a 3% YoY growth. Return on Average Assets (RoA) was 0.71% for FY25 and 0.67% (annualized) for Q1 FY26. Operating Profit for Q2 FY26 grew 12.64% YoY to INR 1,613 Cr.
EBITDA Margin
Not applicable for banking; however, Operating Profit grew 12.64% YoY to INR 1,613 Cr in Q2 FY26. This growth was achieved despite a reduction in treasury and non-interest income, indicating stronger core performance from NII and fee-based streams.
Capital Expenditure
UCO Bank raised equity capital of INR 2,000 Cr through a QIP in March 2025. The board and shareholders have approved further equity capital raising of up to INR 2,700 Cr (face value) for FY26 to support credit growth and maintain capital buffers.
Credit Rating & Borrowing
The bank maintains a 'Strong' liquidity profile with a Liquidity Coverage Ratio (LCR) of 126% as of June 30, 2025. Capital Adequacy Ratio (CRAR) was 18.39% as of June 30, 2025, with a Tier-1 ratio of 16.36%. Cost of deposits stood at 4.84% and cost of funds at 4.73% as of June 30, 2025.
Operational Drivers
Raw Materials
Not applicable for banking; the primary 'raw material' is the cost of deposits, which stood at 4.84% as of June 30, 2025. Low-cost CASA deposits represent 38.11% of total deposits.
Capacity Expansion
Current network includes 3,305 domestic branches, 2,575 ATMs, and 10,920 Business Correspondents (BCs). The bank is focusing on digital expansion, with digital business exceeding INR 10,500 Cr and digital account openings growing 236% YoY.
Raw Material Costs
Cost of funds was 4.73% as of June 30, 2025, compared to 4.78% in FY25. The bank expects profitability to improve as the cost of funds declines following anticipated rate cuts and phased deposit repricing.
Manufacturing Efficiency
Digital adoption is a key efficiency driver: digital advances grew 6x YoY, and digital renewals grew 48x YoY. The Credit-to-Deposit (CD) ratio improved to 75.47% from 71.77% YoY.
Logistics & Distribution
Distribution is managed through 3,305 branches and 10,920 BCs. Operating expenses are being rationalized to improve the cost-to-income profile.
Strategic Growth
Expected Growth Rate
12-14%
Growth Strategy
The bank targets a 12-14% credit growth by focusing on the RAM segment (Retail, Agri, MSME), which now constitutes 65.23% of total advances. Strategy includes co-lending with NBFCs (pool exposure of INR 10,700 Cr), expanding digital business (currently INR 10,500 Cr+), and leveraging international presence in Singapore/Hong Kong for M&A financing opportunities.
Products & Services
Housing loans, vehicle loans, MSME loans, agriculture infrastructure loans, savings accounts, current accounts, and digital banking services via the 'Parivartan' journey.
Brand Portfolio
UCO Bank, UCO Anugoonj (Hindi magazine).
New Products/Services
Introduction of offline CBDC (Central Bank Digital Currency) facility and enhanced co-lending models with NBFCs to gain better visibility on customer onboarding.
Market Expansion
Expansion beyond the Eastern and Northern regions is planned to reduce geographic concentration risk, alongside a focus on M&A financing through international branches.
Market Share & Ranking
UCO is classified as a moderately sized Public Sector Bank (PSB) with a total business of INR 5.24 lakh Cr as of June 30, 2025.
Strategic Alliances
Strategic focus on co-lending relationships with multiple NBFCs to expand the loan book with controlled risk.
External Factors
Industry Trends
The banking industry is seeing a shift toward digital adoption and granular RAM lending. UCO is positioning itself with 236% YoY growth in digital account openings and a 65.23% RAM portfolio share to align with these trends.
Competitive Landscape
Competes with larger PSBs and private banks; currently focused on reaching scale to become more competitive outside its core Eastern/Northern strongholds.
Competitive Moat
The bank's moat is derived from sovereign ownership (Government of India support) and a strong retail deposit base. This provides a stable, low-cost funding source and high systemic importance, which is sustainable given the bank's nationalized status.
Macro Economic Sensitivity
Highly sensitive to RBI interest rate cycles; rate cuts led to a decline in global NIM from 2.99% in March 2025 to 2.96% in June 2025 due to immediate lending rate adjustments.
Consumer Behavior
Increasing preference for digital banking; UCO responded with a 6x growth in digital advances and 48x growth in digital renewals.
Geopolitical Risks
Presence in Iran through a representative office and branches in Hong Kong/Singapore exposes the bank to international regulatory and geopolitical shifts.
Regulatory & Governance
Industry Regulations
Complies with RBI guidelines on capital adequacy (maintaining 18.39% CRAR vs regulatory minimum) and LCR (126% vs 100% minimum). Adheres to RBI guidelines for Security Receipts (SRs), deducting INR 275 Cr from capital as per norms.
Environmental Compliance
The bank has an ESG profile supported by board-level committees and initiatives for community development. Specific ESG compliance costs in INR were not disclosed.
Taxation Policy Impact
The bank has a Deferred Tax Asset (DTA) of INR 5,258 Cr. It expects to transition to the new tax regime in approximately two years (FY27-FY28) as provisioning requirements decrease and profits rise.
Legal Contingencies
The bank reported an NCLT recovery of INR 104 Cr in the recent quarter. Total Provision Coverage Ratio (PCR) remains high at 96.88% to cover potential legal and credit defaults.
Risk Analysis
Key Uncertainties
Asset quality in the agriculture segment remains a concern with a GNPA of 10.81%. The impact of further rate cuts on NIM sustainability is a key uncertainty.
Geographic Concentration Risk
56% of branches are concentrated in Eastern and Northern India, creating vulnerability to regional economic downturns.
Third Party Dependencies
Increasing reliance on NBFCs for co-lending growth (pool exposure of INR 10,700 Cr).
Technology Obsolescence Risk
The bank is mitigating this through its 'Parivartan' digital journey, achieving 6x growth in digital advances to stay relevant against fintech and private competitors.
Credit & Counterparty Risk
Gross NPA is 2.63% and Net NPA is 0.45% as of June 30, 2025. The slippage ratio is 1.18% (annualized). 83% of the portfolio is already provided for in terms of tangible PCR.
