Uco Bank Q3Fy26 profit rises 15.65% to Rs 739 Crore

Kolkata-based state-owned UCO Bank posted a strong performance in the third quarter of the financial year 2025-26, reporting a 15.65 per cent year-on-year increase in net profit to Rs 739 crore, compared with Rs 639 crore in the same quarter last year. Operating profit for the quarter rose 5.93 per cent to Rs 1,680 crore from Rs 1,586 crore a year ago.
The bank’s total business grew by 13.25 per cent year-on-year to Rs 5,53,680 crore as on December 31, 2025. Gross advances increased by 16.74 per cent to Rs 2,43,594 crore, while total deposits rose by 10.64 per cent to Rs 3,10,086 crore. The credit-deposit ratio improved to 78.56 per cent from 74.45 per cent as on December 31, 2024. Total CASA stood at Rs 1,12,083 crore, registering a year-on-year growth of 11.49 per cent, while the CASA ratio improved by 44 basis points to 38.41 per cent.
Asset quality showed further improvement during the quarter, with gross non-performing assets declining by 50 basis points year-on-year to 2.41 per cent as on December 31, 2025. Net NPAs also improved by 27 basis points to 0.36 per cent. The provision coverage ratio stood at 97.32 per cent, while tangible PCR was at 85.47 per cent. The slippage ratio for the quarter remained contained at 0.85 per cent.
Advances in the Retail, Agriculture and MSME segment recorded a strong year-on-year growth of 25.86 per cent to Rs 1,43,919 crore. Retail advances grew by 28.18 per cent to Rs 64,159 crore, supported by an 18.79 per cent rise in the home loan portfolio and a sharp 73.50 per cent growth in vehicle loans. Agriculture advances increased by 24.69 per cent to Rs 34,954 crore, while MSME advances rose by 23.56 per cent to Rs 44,806 crore.
Net interest income for the quarter increased by 11.27 per cent year-on-year to Rs 2,646 crore from Rs 2,378 crore. Global net interest margin stood at 3.08 per cent, while domestic NIM was higher at 3.27 per cent. The cost of funds improved by 27 basis points to 4.48 per cent, yield on advances stood at 8.06 per cent, and the cost-to-income ratio improved by 330 basis points to 52.20 per cent. Return on assets for the quarter improved to 0.83 per cent, while fee-based income surged 29.91 per cent year-on-year to Rs 430 crore.
For the nine months ended December 31, 2025, the bank’s net profit grew by 9.70 per cent year-on-year to Rs 1,967 crore, while operating profit increased by 11.92 per cent to Rs 4,856 crore. Net interest income for the nine-month period rose 9.38 per cent to Rs 7,582 crore, and return on assets stood at 0.75 per cent. Fee-based income for the nine months increased by 22.46 per cent to Rs 1,216 crore.
The bank maintained a comfortable capital position, with the capital adequacy ratio at 17.43 per cent and Tier-I capital ratio at 15.41 per cent as on December 31, 2025. Operational efficiency indicators also improved, with business per employee rising to Rs 26.12 crore and business per branch improving to Rs 166.32 crore.
As on December 31, 2025, UCO Bank operated 3,327 domestic branches, along with two overseas branches each in Hong Kong and Singapore, and one representative office in Iran. Of the domestic branch network, 61.25 per cent branches are located in rural and semi-urban areas, supporting financial inclusion initiatives across the country.