HDFC Securities Pick of the Week 27 July'26: Uco Bank

UCO Bank delivered a strong Q1FY27, driven by robust NII growth, sharp operating profit expansion and continued asset‑quality improvement. Credit growth exceeded guidance, supported by healthy CASA traction, while GNPA/NNPA further declined with a best‑in‑class PCR of ~98%.

The bank’s multi‑year transformation continues to strengthen balance‑sheet resilience. Planned equity dilution and foreign fund mobilisation will support future growth.