Public sector lender UCO Bank reported a 22.66% increase in net profit at ₹801 crore for the March quarter, aided by continued improvement in asset quality.
Net interest income contracted by 3.11% to ₹2,614 crore. Global Net Interest Margin (NIM) improved 1 bps to 3%, while domestic NIM fell 3 bps to 3.19%. Fee-based income registered a growth of 32.65% to ₹516 crore during the quarter.
Asset quality strengthens; capital position remains robust
Gross non-performing assets (GNPA) declined by 52 basis points to 2.17%, while net NPA fell by 23 basis points to 0.27%. The annualised slippage ratio was 0.90% against 1.08%.
Provision Coverage Ratio (PCR) improved to 97.79% from 96.69%, reflecting a stronger buffer against stressed assets. Capital Adequacy Ratio (CRAR) stood at 18.61%.
Business growth gathers pace; credit deployment improves
The bank’s total business expanded 14.95% to ₹5,90,314 crore. Gross advances grew 19.44% to ₹2,62,752 crore, while total deposits rose 11.59% to ₹3,27,563 crore.
Credit to Deposit Ratio improved to 80.21% from 74.94% a year ago.
CASA improves; retail and RAM segments drive advances
Total CASA deposits stood at ₹1,17,752 crore, up 12.46%. Savings deposits rose 11.78% to ₹1,01,025 crore, while current deposits grew 16.77% to ₹16,727 crore. CASA ratio improved by 74 basis points to 38.65%.
The RAM (Retail, Agriculture and MSME) segment grew 24.23% to ₹1,52,324 crore. RAM share was 64.98% of total advances.
Retail advances increased 26.62% to ₹68,697 crore, driven by home and vehicle loan portfolios, which grew 19.11% and 71.12%, respectively.
Segmental growth strong; dividend
Agriculture advances rose 26.24% to ₹37,336 crore, while MSME advances increased 19.36% to ₹46,291 crore.
The bank declared a dividend of ₹4.40 per share.
Guidance growth, recovery
The bank has given a guidance for FY27, wherein it aims for 10-12% growth in deposits, 12-14% in credit growth, bringing down GNPA to below 2% and NNPA to below 0.20% and restrict slippage ratio to below 1%.
Having recovered 2,944 crore during FY26, the bank aims to recover cash in the region of Rs.2,000-2,500 crore for the current fiscal.