UCO Bank Q3 Results: Net Profit Zooms 15.65% To Rs.739 Cr; Asset Quality Improves Sharply

Today, UCO Bank released its financial results for the third quarter and nine months that ended on December 31, 2025. The net profit for the quarter that ended on December 31, 2025, was Rs. 739 crore, up 15.65% YoY from Rs. 639 crore for the same period last year. For the quarter ending December 31, 2025, the bank's Net Interest Income (NII) was Rs. 2,646 Crore, up 11.27% YoY from Rs. 2,378 Crore in Q3FY25.

Operating profit for Q3FY26 was Rs. 1,680 crore, up 5.93% YoY from Rs. 1,586 crore for the same period last year.

According to UCO Bank, the Net Interest Margin (NIM) for the quarter that ended on December 31, 2025, was 3.27. While fee-based income increased by 29.91% YoY to Rs. 430 crore as of December 31, 2025, from Rs. 331 crore as of December 31, 2024, the bank's Return on Asset (ROA) remained at 0.83%, indicating an improvement of 12bps on a Q-o-Q basis.

As of December 31, 2025, UCO Bank reported a robust rise in its balance sheet, indicating consistent business operations throughout key segments. From Rs 4,88,911 crore in the same period last year to Rs 5,53,680 crore in the quarter under review, the bank's total business increased by 13.25% YoY. Regarding liabilities, as of December 31, 2025, total deposits were Rs 3,10,086 crore, up 10.64% from Rs 2,80,256 crore the previous year. In terms of assets, total advances increased by 16.74% YoY to Rs 2,43,594 crore from Rs 2,08,655 crore as on December 31, 2024.

The Retail, Agriculture, and MSME (RAM) portfolio, which stood at Rs 1,43,919 crore, a significant 25.86% year-on-year rise from Rs 1,14,350 crore in the prior year, was a major contributor to the robust credit growth. Retail advances in the RAM category grew by 28.18% YoY to Rs 64,159 crore as of December 31, 2025, from Rs 50,055 crore the previous year. Improved momentum in the housing loan and vehicle loan portfolios, which saw year-on-year growth of 18.79% and a robust 73.50%, respectively, indicating growing demand in the retail lending sector, contributed to this development.

The bank's non-performing asset (NPA) profile has shown a strong year-on-year (YoY) improvement. From 2.91% in December 2024 to 2.41% in December 2025, the Gross NPA ratio dropped dramatically, indicating a 50 basis point increase. Concurrently, there was an even greater relative improvement in the Net NPA ratio, which decreased by 27 basis points from 0.63% to 0.36% during the same time frame.

The bank's high Provision Coverage Ratio (PCR) of 97.32% indicates that it has a cautious buffer against any losses. When excluding certain intangible factors, the Tangible PCR remains strong at 85.47%, indicating that the bank has adequately set aside funds to cover the vast majority of its bad loans. Furthermore, the Slippage Ratio—which tracks the rate at which fresh loans are turning into NPAs—was contained at 0.85% for the quarter ended December 31, 2025, reflecting disciplined underwriting and healthy asset quality stability.

As of December 31, 2025, UCO Bank has 3327 domestic branches, two international branches in Singapore and Hong Kong, and one representative office in Iran. Financial inclusion programs are supported by the fact that 61.25 per cent of domestic branches are located in rural and semi-urban areas.