UCO Bank Reports Q1 FY27 Results: Net Profit Surges to ₹656 Crore as Total Business Crosses ₹6 Lakh Crore

UCO Bank announced its financial results for the first quarter ended June 30, 2026. The state-owned lender registered robust business expansion, driven by strong advance growth in Retail, Agriculture, and MSME (RAM) sectors, improved operational efficiency, and a continued reduction in non-performing assets (NPAs).

Executive Financial Highlights

Total Business: Crossed the landmark milestone to reach ₹6,05,083 crore as of June 30, 2026, registering a year-on-year (YoY) growth of 15.53%.

Net Profit: Increased to ₹656 crore for Q1 FY27, reflecting an 8.05% YoY growth compared to ₹607 crore reported in Q1 FY26 (CPLY).

Operating Profit: Demonstrated impressive momentum, surging 79.84% YoY to ₹2,810 crore for the quarter under review.

Net Interest Income (NII): Expanded 16.86% YoY to ₹2,808 crore in Q1 FY27, up from ₹2,403 crore in Q1 FY26.

Fee-Based Income: Grew 35.12% YoY to reach ₹505 crore, compared to ₹374 crore in CPLY.

Return on Assets (ROA): Stood at 0.68% as of June 30, 2026.

Deposits and Credit Performance

Deposits & CASA Growth

Total Deposits: Increased 11.28% YoY to ₹3,32,315 crore as of June 30, 2026.

CASA Portfolio: Total CASA deposits expanded 12.34% YoY to ₹1,16,136 crore, establishing a CASA ratio of 36.94%.

Savings Deposits: Stood at ₹1,00,870 crore, up 11.78% YoY.

Current Deposits: Reached ₹15,266 crore, posting a growth of 16.23% YoY.

Advances Expansion

Gross Advances: Climbed 21.18% YoY to reach ₹2,72,768 crore as of June 30, 2026.

Credit-to-Deposit (CD) Ratio: Improved significantly to 82.08% as of June 30, 2026, compared to 75.38% a year ago.

Sectoral Performance: RAM Portfolio Gains Momentum

The bank's Retail, Agriculture, and MSME (RAM) portfolio grew 25.27% YoY to ₹1,57,745 crore, backed by strong double-digit growth across all three verticals:

Retail Advances: Surged 27.32% YoY to ₹71,549 crore (up from ₹56,195 crore in CPLY), fueled by a 19.98% expansion in Home Loans and a 65.45% YoY jump in Vehicle Loans.

Agriculture Advances: Rose 30.01% YoY to ₹38,952 crore as of June 30, 2026.

MSME Advances: Reached ₹47,244 crore, marking an 18.79% YoY increase compared to ₹39,771 crore in CPLY.

Margins, Cost Structure & Operational Efficiency

Net Interest Margin (NIM): Global NIM improved by 9 bps YoY to 3.05%, while Domestic NIM widened by 6 bps YoY to 3.24% for Q1 FY27.

Cost of Funds: Improved by 37 bps YoY to 4.36% for the quarter.

Yield on Advances (Domestic): Stood at 8.14% for Q1 FY27.

Cost-to-Income Ratio: Maintained at an efficient level of 37.49%.

Business Per Employee: Improved to ₹28.47 crore as of June 30, 2026, compared to ₹24.64 crore as of June 30, 2025.

Business Per Branch: Increased to ₹176.77 crore from ₹158.37 crore in CPLY.

Asset Quality & Capital Adequacy

Gross NPA Ratio: Reduced by 55 bps YoY to 2.08% as of June 30, 2026.

Net NPA Ratio: Dropped by 20 bps YoY to a low of 0.25%.

Slippage Ratio: Stood at an annualized rate of 0.63% for the quarter.

Provision Coverage Ratio (PCR): Strengthened to 97.85% as of June 30, 2026 (Tangible PCR stood at 88.08%).

Capital Adequacy Ratio (CRAR): Remained robust at 19.03%, supported by a strong Tier-1 Capital Ratio of 17.44%.

Network & Footprint

As of June 30, 2026, UCO Bank's network comprised 3,421 domestic branches, 2 overseas branches located in Hong Kong and Singapore, and 1 Representative Office in Iran. Rural and semi-urban branches account for 61% of the domestic network, sustaining the bank's focus on financial inclusion programs.

Shares of UCO Bank was last trading in BSE at Rs. 26.54 as compared to the previous close of Rs. 26.84. The total number of shares traded during the day was 479185 in over 888 trades.

The stock hit an intraday high of Rs. 27.03 and intraday low of 26.48. The net turnover during the day was Rs. 12780985.00.

Source : Equity Bulls

Keywords

UCOBank INE691A01018 Q1FY27 Q1FY2027 ResultUpdate