UCO Bank Q1 FY27 Results: Net Profit Rises 8% to ₹656 Crore; Asset Quality Improves

UCO Bank reported a steady set of numbers for the June quarter, with higher core income, healthy loan growth and another improvement in asset quality helping the state-owned lender deliver higher profit.

The bank, which announced its Q1 FY27 results after market hours on July 22, posted a net profit of ₹656 crore for the April-June period, up 8.05% from ₹607 crore in the corresponding quarter last year.

Growth in core banking income remained strong. Net interest income (NII) rose 16.86% year-on-year to ₹2,808 crore from ₹2,403 crore, while operating profit jumped 79.84% to ₹2,810 crore.

Margins improved modestly as well. Global net interest margin (NIM) expanded by 9 basis points to 3.05%, while domestic NIM stood at 3.24%, up 6 basis points from a year earlier.

The lender continued to see healthy traction in its loan book. Gross advances increased 21.18% year-on-year to ₹2,72,768 crore, comfortably outpacing deposit growth of 11.28%, which took total deposits to ₹3,32,315 crore. As a result, total business crossed the ₹6 lakh crore mark to reach ₹6,05,083 crore, reflecting growth of 15.53% over the previous year.

The Retail, Agriculture and MSME (RAM) portfolio remained one of the key growth drivers during the quarter. Outstanding RAM advances rose 25.27% year-on-year to ₹1,57,745 crore. Retail loans grew 27.32%, agriculture advances expanded 30.01%, while MSME lending increased 18.79%.

Low-cost deposits also registered steady growth. CASA deposits stood at ₹1,16,136 crore as of June 30, 2026, compared with ₹1,03,373 crore a year earlier. Within this, savings deposits rose 11.78% to ₹1,00,870 crore, while current account deposits increased 16.23% to ₹15,266 crore. The CASA ratio stood at 36.94%.

UCO Bank Q1 FY27 Results: Asset Quality

The June quarter saw a further improvement in the bank's asset quality.

Gross non-performing assets (GNPA) declined to 2.08% from 2.63% a year ago, while net non-performing assets (NNPA) eased to 0.25% from 0.45%. The provision coverage ratio improved to 97.85%, with tangible PCR at 88.08%.

Fresh stress remained under control, with the annualised slippage ratio at 0.63% during the quarter.

The bank also maintained a comfortable capital position. Its Capital Adequacy Ratio (CRAR) stood at 19.03% at the end of June, including a Tier-I capital ratio of 17.44%.

UCO Bank Q1 FY27 Results: Other Highlights

Retail advances reached ₹71,549 crore, compared with ₹56,195 crore in the year-ago period. Within the segment, home loan advances grew 19.98% year-on-year, while vehicle loans recorded a sharp 65.45% increase.

MSME advances rose to ₹47,244 crore from ₹39,771 crore a year earlier, reflecting sustained credit demand from small businesses.

The latest quarterly performance indicates that UCO Bank continued to expand its lending franchise while improving asset quality and maintaining strong capital buffers, even as deposits and low-cost CASA balances registered steady growth.

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