UCO Bank's net profit up by 10% year-on-year in June quarter
By Shishta Dutta | Updated at: Jan 7, 2026 02:48 PM IST
Kolkata, July 21, 2025 — UCO Bank (NSE: UCOBANK) has reported a 10.27% year-on-year (YoY) growth in standalone net profit at ₹607.44 crore for the quarter ended June 30, 2025 (Q1FY26), compared to ₹550.9 crore in Q1FY25. The performance was driven by an increase in interest income, cost control, and lower provisions.
Performance was led by corporate banking, which posted 19.4% revenue growth, while treasury and retail segments held steady. Asset quality improved, with both GNPA and NNPA declining, and PCR rising to 96.88%. Operating metrics and capital adequacy also strengthened sequentially.
As on 21-Jul-2025, UCO Bank closed at ₹31.79, down 1.06% from the previous close. The stock moved between ₹31.65 and ₹32.40 intraday, with a VWAP of ₹31.89. Total volume stood at 129.64 lakh shares worth ₹41.34 crore.
Key Financial Highlights (Standalone)
| Particulars | Q1FY26 (₹ lakhs) | Q4FY25 (₹ lakhs) | Q1FY25 (₹ lakhs) | YoY % Change | QoQ % Change |
|---|---|---|---|---|---|
| Interest Earned | 6,43,601 | 6,74,459 | 6,02,399 | 6.84% | -4.58% |
| Other Income | 99,720 | 1,39,220 | 83,543 | 19.34% | -28.36% |
| Total Income | 7,43,321 | 8,13,679 | 6,85,942 | 8.36% | -8.63% |
| Interest Expended | 4,03,278 | 4,04,610 | 3,77,043 | 6.95% | -0.33% |
| Operating Expenses | 1,83,817 | 2,39,192 | 1,76,776 | 3.98% | -23.13% |
| — Employees Cost | 1,27,635 | 1,61,785 | 1,20,812 | 5.65% | -21.14% |
| — Other Operating Expenses | 56,182 | 77,407 | 55,964 | 0.39% | -27.45% |
| Total Expenditure | 5,87,095 | 6,43,802 | 5,53,819 | 6.02% | -8.81% |
| Operating Profit | 1,56,226 | 1,69,877 | 1,32,123 | 18.23% | -8.02% |
| Provisions (Excl. Tax) | 61,606 | 66,263 | 45,876 | 34.27% | -7.02% |
| Profit Before Tax | 94,620 | 1,03,614 | 86,247 | 9.72% | -8.67% |
| Tax Expenses | 33,876 | 38,371 | 31,151 | 8.75% | -11.74% |
| Net Profit | 60,744 | 65,243 | 55,096 | 10.27% | -6.90% |
The table above highlights a steady YoY growth in both revenue and profitability. Despite a sequential dip in total income and operating profit, net profit remained resilient due to a significant drop in operating expenses.
Key Ratios
| Metric | Q1FY26 | Q1FY25 |
|---|---|---|
| Gross NPA (%) | 2.63% | 3.32% |
| Net NPA (%) | 0.45% | 0.78% |
| Provision Coverage Ratio (PCR) | 96.88% | 95.76% |
| Capital Adequacy Ratio (Basel III) | 18.39% | 17.09% |
| Return on Assets (Annualised) | 0.71% | 0.70% |
| Net Worth | ₹22,220.07 Cr | ₹16,384.17 Cr |
| EPS (Basic & Diluted) (₹) | 0.48 | 0.46 |
The improvement in asset quality is reflected in lower GNPA and NNPA percentages. The bank has also strengthened its capital base and maintained a consistent return on assets.
Segment-Wise Performance (Q1FY26)
| Segment | Revenue (₹ Cr) | YoY Growth | Segment Profit (₹ Cr) |
|---|---|---|---|
| Treasury Operations | 2,14,396 | +0.75% | 48,494 |
| Corporate Banking | 2,78,660 | +19.4% | 21,808 |
| Retail Banking | 2,45,679 | +4.3% | 19,732 |
| – Digital Banking | 3 | Flat | -55 |
| – Other Retail Banking | 2,45,676 | +4.3% | 19,787 |
| Other Banking Operations | 4,586 | +8.4% | 4,586 |
| Total Revenue | 7,43,321 | +8.36% |
Corporate banking emerged as the top contributor to revenue growth. Treasury operations also remained stable, while retail banking maintained consistent performance. Digital banking remained neutral in earnings impact.
Asset & Liability Snapshot
| Particulars | Q1FY26 (₹ Cr) |
|---|---|
| Total Assets | 3,65,704.29 |
| Total Liabilities | 3,65,704.29 |
| Retail Banking Assets | 1,09,106.01 |
| Corporate Banking Assets | 1,24,029.54 |
| Treasury Operations Assets | 1,32,111.48 |
The asset base remains well-distributed, with treasury and corporate banking comprising the bulk of assets. Balance sheet expansion remains conservative and healthy.
Geographic Revenue Breakdown (Q1FY26)
| Region | Revenue (₹ Cr) | Contribution to Total |
|---|---|---|
| Domestic | 6,95,725 | 93.6% |
| International | 47,596 | 6.4% |
| Global Total | 7,43,321 | 100% |
UCO Bank continues to derive the majority of its income from domestic operations, with international exposure contributing modestly to the topline.
Auditor’s Review
The bank’s Q1FY26 results were reviewed by four statutory audit firms. They issued an unmodified opinion in compliance with SEBI Regulations 33 and 52, confirming the integrity of the financial disclosures.
Outlook
UCO Bank’s profit growth and improved asset quality highlight stronger operational efficiency. The market reads this as a sign of disciplined credit management and cost control. Sustained improvement in corporate lending and stable margins could support valuation expansion in upcoming quarters.
About the Company
UCO Bank (BSE: 532505 | NSE: UCOBANK), headquartered in Kolkata, is a public sector lender with comprehensive offerings in retail, corporate, digital, and treasury banking. The bank is majority-owned by the Government of India, which holds a 90.95% stake as of June 30, 2025. UCO Bank is listed on both NSE and BSE and continues to enhance its digital and credit portfolio to align with evolving market demands.
REF: https://nsearchives.nseindia.com/corporate/UCOBANK_21072025124442_nseresults.pdf
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