UCO Bank delivered robust financial performance in the June quarter, with net profit rising 8.1% year-on-year to ₹656 crore. According to reports from CNBC TV18, Business Standard, and The Hindu BusinessLine, the bank posted a net profit of ₹656.32 crore for Q1FY27, compared with ₹607.44 crore in the corresponding quarter last year. However, provisions more than doubled to ₹2,154 crore during the quarter, primarily due to tax-related provisions, as reported by Business Standard. This growth was primarily driven by strong operational performance and improved asset quality metrics, with total income standing at ₹4,64,224 lakh during the quarter. The latest data confirms the 80% increase in operating profit and 62% fall in provisions during the quarter, with the bank's operating profit increasing by 79.84% YoY to ₹2,810 crore. Business Standard reports that total operating income rose 8.70% to ₹6,996 crore in Q1FY27, compared to ₹6,436 crore in the previous year.
The bank's core revenue performance was particularly strong, with net interest income increasing 16.86% to ₹2,808 crore compared to ₹2,403 crore in the same quarter last year. As reported by CNBC TV18 and Business Standard, the 16.86% rise in NII remained the key driver of the bank's financial performance, while the substantial increase in net interest income reflects the bank's ability to optimize its lending portfolio and improve asset utilization, with the bank's yield on advances (domestic) standing at 8.14% in Q1FY27. According to The Hindu BusinessLine, net interest income rose to ₹2,808.26 crore from ₹1,403.23 crore for the corresponding period last fiscal. Additionally, non-interest income grew 69% YoY to ₹1,686 crore, driven by ₹1,018 crore of recoveries from written-off accounts and a 35% increase in fee income to ₹505 crore.
UCO Bank achieved significant margin expansion during the quarter. As reported by CNBC TV18 and Business Standard, global net interest margin improved to 3.24% from 3.19% at the end of March 2026, while domestic NIM rose to 3.24% from 3.18% on an annual basis. The bank's net interest margin (NIM) stood at 3.24% at the end of the quarter, compared with 3.19% in the quarter ended March 31, 2026, and 3.18% as of June 30, 2025. According to The Hindu BusinessLine, domestic Net interest margin (NIM) improved 6 basis points year-on-year and stood at 3.24% for Q1FY27. The bank's asset quality metrics showed continued improvement, with gross non-performing assets declining to 2.08% from 2.17% in the previous quarter, while net NPAs eased to 0.25% from 0.27%. Provisions and contingencies fell to ₹234.61 crore from ₹616.06 crore a year ago, backed by around 45% year-on-year drop in provisions for gross non-performing assets as the bank's asset quality improved.
UCO Bank demonstrated exceptional business growth during the quarter, with total business standing at ₹6,05,083 crore, registering a growth of 15.53% YoY. According to the latest earnings release, gross advances grew by 21.18% YoY to ₹2,72,768 crore, while total deposits grew by 11.28% YoY to ₹3,32,315 crore. The bank's CASA performance remained strong with total CASA at ₹1,16,136 crore, registering a growth of 12.34% YoY, comprising savings deposits of ₹1,00,870 crore (11.78% YoY growth) and current deposits of ₹15,266 crore (16.23% YoY growth). The CASA ratio stood at 36.94%, maintaining the bank's strong low-cost deposit base. The bank also reported strong performance under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, having sanctioned ₹2,152 crore and disbursed ₹1,680 crore till date.
UCO Bank demonstrated exceptional loan portfolio growth during the quarter, with domestic advances growing 22.26% YoY and 4.31% quarter-on-quarter to ₹2.44 trillion. According to Business Standard, retail advances grew 27.32% YoY to ₹71,549 crore, backed by expansion in home loan and vehicle loan portfolios. The bank also achieved significant growth in other segments, with agriculture advances expanding 30% YoY to ₹38,952 crore, MSME sector advances growing 18.79% YoY to ₹47,244 crore, and corporate advances increasing 17.14% YoY to ₹86,742 crore. During the post-earnings media call, the bank announced plans to raise up to $500 million through concessional Foreign Currency Non-Resident (Bank) deposits and overseas foreign currency borrowings, as stated by Rajendra Kumar Saboo, managing director and CEO-in-charge. The bank has set a target of 10-12% YoY growth in deposits and 12-14% YoY growth in credit for FY27. According to The Hindu BusinessLine, credit growth in the first quarter this fiscal was 21.18% year-on-year, while advances in Retail, Agriculture & MSME (RAM) sectors increased 25.27% YoY.
