State-owned UCO Bank delivered robust financial performance in Q2 FY27, with standalone net profit rising 26.8% year-on-year to ₹786 crore compared with ₹620 crore in the same period last year. According to reports from The Economic Times, the improved bottom line was driven by lower tax outgo and steady growth in core income. Sequential growth was even stronger at about 20% from ₹656 crore in the June quarter, demonstrating consistent momentum in the bank's profitability. As per CNBC TV18, the net profit figure stands at ₹785.6 crore for the quarter.
Net interest income, the bank's core income stream, grew 14% year-on-year to ₹2,886 crore from ₹2,533 crore a year ago, as reported by The Economic Times. Operating profit increased 16.1% to ₹1,872 crore from ₹1,613 crore in the corresponding quarter last year. However, other income nearly halved to ₹888 crore from ₹1,686 crore, primarily due to recoveries from written-off accounts dropping to ₹301 crore from over ₹1,000 crore in the first quarter. According to CNBC TV18, the bank's net interest income came in at ₹2,886.4 crore for the quarter.
The bank's asset quality showed significant improvement during the quarter. Gross non-performing assets (NPAs) fell to 1.96% of gross advances from 2.08% in the June quarter and 2.56% a year ago, as reported by The Economic Times. Net NPAs declined to 0.18% from 0.25% sequentially and 0.43% a year earlier. The provision coverage ratio stood at 98.36%, compared with 96.99% a year ago, indicating stronger risk management practices. As per CNBC TV18, gross NPA contracted to 1.96% from the previous quarter's 2.08%.
On the balance sheet front, advances grew 25.2% year-on-year to ₹2.83 lakh crore while deposits rose 14.4% to ₹3.50 lakh crore, according to The Economic Times. Tax outgo fell to ₹279 crore from ₹405 crore a year ago after the bank opted for the lower tax regime under Section 115BAA from FY27. However, provisions and contingencies rose to ₹808 crore from ₹588 crore in the year-ago quarter, with much of the increase coming from forward-looking expected credit loss provisions. As per CNBC TV18, provisions were at ₹807.6 crore in the September quarter compared to ₹234.6 crore in the prior one and ₹588 crore in the year-ago period.
Following the results announcement, UCO Bank shares surged sharply by 3.5% post reporting their second quarter results to hit an intraday high of ₹24.8 apiece, as reported by CNBC TV18. However, the stock then fell 4.4% sharply as well to hit an intraday low of ₹23.71 apiece, demonstrating significant volatility in post-earnings trading. The stock is currently trading at ₹23.97 on Thursday, October 15, up 0.08% from the previous close of ₹23.95, according to latest market data. The stock trades within a 52-week range of ₹22.30 to ₹34.20, close to its yearly low and about 30% below its high. For the half year ended September, net profit rose 17.5% to ₹1,442 crore from ₹1,227 crore, demonstrating sustained performance improvement across the fiscal year.
