State-owned UCO Bank reported an 8 per cent year-on-year (YoY) rise in net profit to Rs 656 crore in the April-June quarter, driven by growth in both core and non-core income.
Net interest income (NII) — the difference between interest earned and interest expended — grew 16.86 per cent YoY to Rs 2,808 crore.
Non-interest income grew 69 per cent YoY to Rs 1,686 crore, driven by Rs 1,018 crore of recoveries from written-off accounts and a 35 per cent increase in fee income to Rs 505 crore.
The bank's net interest margin (NIM) stood at 3.24 per cent at the end of the quarter, compared with 3.19 per cent in the quarter ended March 31, 2026, and 3.18 per cent as of June 30, 2025.
Provisions made by the bank more than doubled to Rs 2,154 crore during the quarter, mainly due to tax-related provisions.
The bank's domestic advances grew 22.26 per cent YoY and 4.31 per cent quarter-on-quarter (Q-o-Q) to Rs 2.44 trillion. Retail advances grew 27.32 per cent YoY to Rs 71,549 crore, backed by growth in the home loan and vehicle loan portfolios. Agriculture advances expanded 30 per cent YoY to Rs 38,952 crore as of June 30, 2026, while advances to the MSME sector grew 18.79 per cent YoY to Rs 47,244 crore. Advances to corporates and others grew 17.14 per cent YoY to Rs 86,742 crore.
Domestic deposits grew 16.42 per cent YoY and 3.68 per cent Q-o-Q to Rs 5.58 trillion. Of this, current account savings account (Casa) deposits grew 12.34 per cent YoY but declined 1.37 per cent Q-o-Q to Rs 1.16 trillion. The Casa ratio stood at 36.94 per cent, compared with 36.91 per cent in Q1 FY26.
The bank has set a target of 10-12 per cent YoY growth in deposits and 12-14 per cent YoY growth in credit for FY27.
Asset quality improved, with the gross non-performing asset (NPA) ratio at 2.08 per cent in the quarter, compared with 2.17 per cent as of March 31, 2026. The net NPA ratio stood at 0.25 per cent as of June 30, 2026, against 0.27 per cent as of March 31, 2026.
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