UCO Bank reported robust financial results for the financial year ending March 31, 2026. The bank achieved a full-year net profit of Rs. 2,768 crore, representing a 13.21% growth. Business growth remained strong at 14.95%, with gross advances increasing by 19.44%. The bank continues to prioritize digital transformation and maintains a stable asset quality, with gross NPA improving to 2.17%, supported by consistent performance across its retail, agriculture, and MSME segments.
Financial Highlights
For the full financial year 2025-26, UCO Bank delivered a strong performance, reporting an operating profit of Rs. 6,429 crore, a 6.49% increase. Net profit for the final quarter (Q4) stood at Rs. 801 crore, marking a 22% growth on a year-on-year basis. The bank’s capital adequacy ratio reached 18.61%, with Tier-1 capital at 16.59%. The Board has declared a dividend of 44 paisa per equity share, reflecting a payout of approximately 20%.
Asset Quality and Business Segments
UCO Bank demonstrated disciplined asset quality management, with gross NPA reducing to 2.17% and net NPA to 0.27%. The Provision Coverage Ratio (PCR) improved to 98%. The bank’s RAM segment (Retail, Agriculture, and MSME) showed impressive momentum, growing by 24%, with retail advances rising by over 26%. Housing and car loans were significant contributors to this growth, with car loan segments surging by approximately 71%.
Digital Transformation and Future Initiatives
The bank’s digital strategy, Project Parivartan, has achieved significant milestones, with total digital business across assets and liabilities crossing Rs. 25,000 crore. Active mobile banking users have increased five-fold to 70 lakhs over the past three years. Looking ahead, UCO Bank plans to further enhance its technological capabilities with a dedicated IT budget exceeding Rs. 1,000 crore for the new financial year. Planned initiatives include the launch of omni-channel services, robotic process automation, and a new digital transformation management vertical.
Strategic Outlook
For the coming fiscal year, the bank has provided guidance for deposit growth in the 10% to 12% range and credit growth between 12% and 14%. Management remains focused on improving the Return on Assets (ROA), targeting 0.95% to 1% by the end of the next financial year through sustained CASA growth and continued improvement in net interest margins.
Source: BSE
