UCO Bank’s Q3 FY26 earnings call revealed a 13.25% year-over-year business growth, supported by deposit and advances growth. CASA ratio improved to 38.41%. Operating profit reached ₹1,680 crores, with net profit at ₹739 crores. Gross NPA improved to 2.41%, and net NPA to 0.36%. The bank maintains a strong capital adequacy ratio and focuses on digital transformation, with significant progress in digital business and customer service initiatives.
Financial Performance Overview
UCO Bank reported a strong performance in Q3 FY26, with overall business growth of 13.25% year-over-year. This was driven by a 10.64% increase in deposits and a 16.74% increase in advances.
Key Financial Metrics
Significant financial highlights from the earnings call include:
- CASA ratio improved by 44 bps to 38.41%.
- Operating profit stood at approximately ₹1,680 crores, a 6% year-over-year increase.
- Net profit reached ₹739 crores, representing a 15.65% growth.
- Net interest income increased by 11.27% year-over-year.
- Net interest margin (NIM) improved to 3.08% globally and 3.27% domestically.
- Cost of funds improved by 27 bps to 4.48%.
- Cost to income ratio reduced to 52.20%, a 330 bps reduction year-on-year.
- Return on assets improved to 0.83%.
Asset Quality
UCO Bank showed significant improvement in asset quality:
- Gross NPA improved to 2.41%, a 50 bps reduction year-over-year.
- Net NPA improved to 0.36%, a 27 bps reduction year-over-year.
- PCR improved to 97.32%.
- Tangible PCR now stands at 85.47%.
Business Growth and Strategy
The bank’s advances growth of 16.74% was largely driven by the RAM segment, which increased by 25.86%. This includes:
- Retail advances grew by 28.18%.
- Agriculture advances grew by 24.69%.
- MSME advances grew by 23.56%.
Digital Transformation
UCO Bank has made considerable progress in its digital transformation initiatives. Project Parivartan has seen the implementation of over 30 digital journeys, resulting in approximately ₹15,900 crore of digital business. Over 2 lakh customers have received credit through digital channels. More than 50% of fixed deposits are now made digitally.
Capital Position and CD Ratio
The bank maintains a strong capital position. The capital adequacy ratio stood at 17.43%, with Tier 1 capital at 15.41% and CET1 at 15.18%. Including nine months’ profit, the capital adequacy ratio stands at 18.67%. The CD ratio has improved to 78.56% as of December 2025.
Source: BSE
