UCO Bank (UCOBANK) Q1 26/27 earnings summary

Executive summary

• Total business reached ₹6,05,083 crore as of June 30, growing 15.53% year-over-year, with advances up 21.18% and deposits up 11.28%.

• Operating profit rose 79.84% year-over-year to ₹2,810 crore, while net profit increased 8.05% to ₹656 crore, impacted by a one-time DTA charge due to a shift to the new tax regime.

• Asset quality improved, with gross NPA at 2.08% (down 55 bps YoY) and net NPA at 0.25% (down 20 bps YoY).

• Provision coverage ratio stood at 97.85%.

• Unaudited financial results for the quarter ended 30 June 2026 were approved by the Board on 22 July 2026, with a limited review and unmodified auditor opinion.

Financial highlights

• Advances reached ₹2,72,768 crore; deposits at ₹3,32,315 crore.

• Net interest income rose 16.86% YoY to ₹2,808 crore; fee-based income up 35%.

• CASA deposits grew 12.34% YoY, with a CASA ratio of 36.94%.

• Operating profit before provisions was ₹2,80,954 lakh, up from ₹1,56,226 lakh in Q1 FY26.

• Recovery from technical written-off accounts contributed ₹1,018 crore.

Outlook and guidance

• Deposit growth guidance of 10%-12% and credit growth of 12%-14% have been surpassed; actuals at 11.28% and 21.18% respectively.

• NIM guidance remains at 2.8%-2.9%, with current NIM at 3.05%.

• Cost-to-income ratio improved to 52.92% and is expected to normalize below or around 50% for FY 2026/2027.

• Credit cost guidance below 0.75%; actual annualized credit cost at 0.39%.

• ROA currently at 0.68% annualized; expected to approach 1% by year-end.