UCO Bank has reported a solid financial performance for the third quarter of FY26, supported by strong business growth, improved asset quality, and higher profitability.
The bank’s net profit rose 15.65 per cent year-on-year to Rs 739 crore, compared to Rs 639 crore in the same period last year. Operating profit also increased by nearly 6 per cent to Rs 1,680 crore, while net interest income grew 11.27 per cent to Rs 2,646 crore, reflecting better lending yields and improved cost efficiency.
The bank’s total business stood at Rs 5.54 lakh crore, registering a 13.25 per cent year-on-year growth. Gross advances rose sharply by 16.74 per cent to Rs 2.44 lakh crore, while total deposits increased 10.64 per cent to Rs 3.10 lakh crore. CASA deposits grew 11.49 per cent, improving the CASA ratio by 44 basis points to 38.41 per cent.
Growth in retail, agriculture, and MSME (RAM) segments remained robust, with the combined portfolio expanding 25.86 per cent year-on-year to Rs 1.44 lakh crore. Retail advances grew 28.18 per cent, agriculture loans rose 24.69 per cent, and MSME advances increased 23.56 per cent, highlighting diversified credit momentum.
Asset quality continued to strengthen, with gross NPAs declining to 2.41 per cent from 2.91 per cent a year earlier, while net NPAs improved to 0.36 per cent. The provision coverage ratio stood at a healthy 97.32 per cent, reflecting prudent risk management.
The bank’s capital position also remained strong, with a capital adequacy ratio of 17.43 per cent and Tier-1 capital at 15.41 per cent. Credit-to-deposit ratio improved to 78.56 per cent, indicating better credit deployment.
Operational efficiency improved during the quarter, with business per employee rising to Rs 26.12 crore and business per branch reaching Rs 166.32 crore.
As of December 31, 2025, UCO Bank operated 3,327 domestic branches, along with overseas branches in Hong Kong and Singapore, and a representative office in Iran. Over 61 per cent of its domestic branches are located in rural and semi-urban areas, reinforcing the bank’s focus on financial inclusion.
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