UCO Bank Posts Strong Q4 Growth With 23 % Profit Surge

UCO Bank reported a robust financial performance for the fourth quarter of FY 2025-26, registering a 22.66 per cent year-on-year rise in net profit to Rs.801 crore, compared to Rs.653 crore in the corresponding period last year.
The bank’s total business rose by 14.95 per cent to Rs.5,90,314 crore as of March 31, 2026. Gross advances grew sharply by 19.44 per cent to Rs.2,62,752 crore, while total deposits increased by 11.59 per cent to Rs.3,27,563 crore.
The lender also recorded steady improvement in asset quality, with gross non-performing assets declining by 52 basis points to 2.17 per cent and net NPA falling by 23 basis points to 0.27 per cent. The capital adequacy ratio stood at a healthy 18.61 per cent, including a Tier I capital ratio of 16.59 per cent.
CASA deposits rose by 12.46 per cent to Rs.1,17,752 crore, improving the CASA ratio to 38.65 per cent. Savings deposits grew by 11.78 per cent, while current deposits saw a stronger growth of 16.77 per cent.
Advances under the retail, agriculture and MSME segments registered a combined growth of 24.23 per cent to Rs.1,52,324 crore. Retail advances grew by 26.62 per cent, agriculture advances by 26.24 per cent and MSME advances by 19.36 per cent.
For the full financial year, net profit increased by 13.21 per cent to Rs.2,768 crore, while operating profit rose by 6.49 per cent to Rs.6,429 crore. Net interest income grew by 5.89 per cent to Rs.10,197 crore.
Operational efficiency improved, with business per employee rising to Rs.28.08 crore and business per branch increasing to Rs.172.91 crore. The bank’s cost-to-income ratio improved significantly to 52.66 per cent.
The provision coverage ratio stood at 97.79 per cent, reflecting strong risk management, while the slippage ratio was contained at 0.78 per cent.
The bank has proposed a dividend of 4.40 per cent, equivalent to 44 paise per equity share, for FY 2025-26, subject to shareholder approval.
As of March 31, 2026, the bank operated 3,412 domestic branches along with overseas branches in Hong Kong and Singapore, and a representative office in Iran.
Notably, 61 per cent of its domestic branches are located in rural and semi-urban areas, supporting financial inclusion efforts.