UCO Bank Q1 earnings: Net profit rises 8% YoY to ₹656 crore; NII grows 17% to ₹2,808 crore

UCO Bank, the state-run lender, announced its June quarter (Q1 FY27) earnings on Wednesday, July 22, post-market hours.

The bank, in its earnings release, said that net profit for the quarter ended June 30, 2026, stood at ₹656 crore as against ₹607 crore logged in the year-ago period, registering a growth of 8.05% year-on-year (YoY).

Net interest margin (NIM) - Global improved by 9 bps YoY and stood at 3.05%, while Domestic NIM improved by 6 bps YoY and stood at 3.24%.

Net interest income (NII) grew by 16.86% YoY to ₹2,808 crore during the quarter as against ₹2,403 crore registered in the corresponding quarter of the previous fiscal year.

Operating profit increased by 79.84% YoY to ₹2,810 crore.

Key metrics

• Business Growth - Total Business of the bank stood at ₹6,05,083 crore, registering a growth of 15.53% on a YoY basis, wherein Gross Advances grew by 21.18% on a YoY basis to ₹2,72,768 crore & Total Deposits grew by 11.28% on a YoY basis to ₹3,32,315 crore.
• CASA Growth – Total CASA stood at ₹1,16,136 crore at the end of the June quarter, registering a growth of 12.34% on a YoY basis; Savings Deposit stood at ₹1,00,870 crore, registering a growth of 11.78% on a YoY basis, and Current Deposit stood at ₹15,266 crore, registering a growth of 16.23% on a YoY basis. CASA Ratio stood at 36.94%.
• Advances in Retail, Agriculture & MSME (RAM) Sectors - RAM segment of the Bank increased by 25.27% to ₹1,57,745 crore YoY, backed by 27.32% YoY growth in Retail advances, 30.01% YoY growth in Agriculture advances, and 18.79 % YoY growth in MSME advances.

Reduction in NPA

UCO Bank said its gross NPA reduced by 55 bps YoY to 2.08%, whereas Net NPA reduced by 20 bps YoY to 0.25%.

Capital Adequacy Ratio

Capital Adequacy Ratio (CRAR) stood at 19.03% with Tier I Capital Ratio of 17.44%.

Capital Adequacy Ratio (CAR), also known as the Capital to Risk-Weighted Assets Ratio (CRAR), measures a bank's financial strength and its ability to absorb potential losses while protecting depositors.

It tells you how much capital a bank has relative to the riskiness of its loans and other assets.

A higher CAR indicates that a bank is better positioned to withstand unexpected losses and continue operating during periods of financial stress.

Other key highlights

• Asset & Liabilities (As of June 30, 2026): Retail Advances stood at ₹71,549 crore for the June quarter as against ₹56,195 crore in the year-ago period, registering a YoY growth of 27.32%, backed by growth in Home loan and Vehicle loan portfolio which registered a growth of 19.98% and 65.45% respectively on a YoY basis.

• Advances to the MSME sector stood at ₹47,244 crore as against ₹39,771 crore, registering a growth of 18.79% on a YoY basis.

Slippage Ratio for the quarter ended June stood at 0.63%(Annualised).