UCO Bank Q3 FY26 Results Highlight Profit Rise, Strong NII Growth and Improved Asset Quality

UCO Bank has reported a steady performance for the quarter and nine months ended 31 December 2025, with growth across income, profitability and asset quality indicators. Net profit for the October–December 2025 quarter stood at Rs. 739 crore, rising 15.65% year-on-year from Rs. 639 crore. The bank also reported stronger core interest earnings, higher fee income and an improved return on assets during the period.

Core lending income continued to support profitability. Net Interest Income for Q3FY26 was reported at Rs. 2,646 crore, compared with Rs. 2,378 crore in Q3FY25, reflecting growth of 11.27% year-on-year. Operating profit for the quarter reached Rs. 1,680 crore, higher than Rs. 1,586 crore a year earlier, which translated into a 5.93% year-on-year rise, showing disciplined cost and income management.

For the quarter ended 31 December 2025, UCO Bank’s Net Interest Margin stood at 3.27, indicating stable pricing and yield dynamics on its interest-earning assets. Fee-based income also contributed meaningfully, increasing 29.91% year-on-year to Rs. 430 crore from Rs. 331 crore as of 31 December 2024. Return on Asset remained at 0.83%, with a quarter-on-quarter improvement of 12 basis points, signalling better utilisation of the balance sheet.

The bank’s overall business franchise expanded during the period, reflecting consistent traction in both deposits and advances. Total business as of 31 December 2025 rose 13.25% year-on-year to Rs. 5,53,680 crore, against Rs. 4,88,911 crore a year earlier. On the liabilities side, total deposits climbed to Rs. 3,10,086 crore, compared with Rs. 2,80,256 crore on 31 December 2024, marking growth of 10.64%.

Credit growth outpaced deposit growth, driven mainly by the Retail, Agriculture and MSME portfolio. Total advances increased 16.74% year-on-year to Rs. 2,43,594 crore as on 31 December 2025, from Rs. 2,08,655 crore a year earlier. The RAM book reached Rs. 1,43,919 crore, up 25.86% from Rs. 1,14,350 crore, highlighting a strategic tilt towards granular, diversified lending segments.

Within RAM, retail lending showed firm momentum. Retail advances rose 28.18% year-on-year to Rs. 64,159 crore on 31 December 2025, compared with Rs. 50,055 crore in the previous year. Housing loans grew 18.79% year-on-year, while vehicle loans saw a much sharper 73.50% rise. These trends pointed to stronger demand for personal credit, housing finance and auto funding in the bank’s retail book.

Metric	Q3FY26 / 31 Dec 2025	Q3FY25 / 31 Dec 2024	YoY Change
Net Profit (Rs. crore)	739	639	+15.65%
Net Interest Income (Rs. crore)	2,646	2,378	+11.27%
Total Business (Rs. crore)	5,53,680	4,88,911	+13.25%
Total Deposits (Rs. crore)	3,10,086	2,80,256	+10.64%
Total Advances (Rs. crore)	2,43,594	2,08,655	+16.74%

UCO Bank financial results, asset quality and coverage metrics

Asset quality indicators strengthened over the year. The Gross NPA ratio declined from 2.91% in December 2024 to 2.41% in December 2025, a reduction of 50 basis points. Net NPA showed an even sharper relative improvement, dropping from 0.63% to 0.36% over the same period, a 27 basis point decline, underscoring better recoveries and prudent recognition.

Provision buffers remained conservative. The Provision Coverage Ratio stood at 97.32%, suggesting a high level of provisioning against identified stressed assets. Tangible PCR, after adjusting for certain intangibles, was also strong at 85.47%, indicating that most non-performing exposures were covered. The Slippage Ratio was contained at 0.85% for the quarter ended 31 December 2025, reflecting controlled fresh stress formation and disciplined underwriting.

UCO Bank’s network continued to support business growth and financial inclusion goals. As of 31 December 2025, the bank operated 3,327 domestic branches, along with two overseas branches in Singapore and Hong Kong, and one representative office in Iran. Around 61.25% of domestic outlets were located in rural and semi-urban centres, aligning with regulatory focus on inclusive banking and expanding access to credit.