State-owned UCO Bank demonstrated robust performance in the third quarter of FY26, with total business rising 13.29% year-on-year to ₹5.54 lakh crore from ₹4.89 lakh crore in the corresponding period of the previous year, according to a regulatory filing by the Kolkata-headquartered bank. The sequential growth was equally impressive at 3.36% quarter-on-quarter, indicating sustained momentum in the bank's operations. This growth trajectory reflects the bank's ability to expand its market presence in a competitive banking environment.
The bank's lending portfolio showed particularly strong performance, with total advances increasing 16.27% year-on-year to ₹2.43 lakh crore from ₹2.09 lakh crore in the year-ago period. Domestic advances during the quarter saw even higher growth of 17.49%, climbing to ₹2.15 lakh crore from ₹1.83 lakh crore, demonstrating exceptional credit demand in the domestic market. On a sequential basis, loans grew 5.19% quarter-on-quarter, reflecting the bank's capacity to deploy funds effectively across various lending segments.
Total deposits stood at ₹3.10 lakh crore, registering growth of 10.71% year-on-year from ₹2.80 lakh crore in the quarter ended December 2024, reflecting stable deposit accretion despite the competitive deposit environment. Domestic deposits grew 10.19% to ₹2.92 lakh crore during the quarter under review. The domestic CASA ratio improved to 38.41% compared to 37.97% in the same quarter of the previous fiscal, supporting funding cost stability and indicating a better mix of low-cost funds.
The bank's asset deployment showed significant improvement during the quarter. The credit-deposit ratio climbed to 78.61% at the end of the December 2025 quarter, up from 74.45% in the year-ago period and 75.47% in the preceding quarter. This enhanced ratio underscores stronger credit deployment and efficient utilization of deposit resources, reflecting the bank's improved ability to convert deposits into productive lending assets.
The market responded favorably to UCO Bank's business update, with shares closing at an intraday high of ₹30.62 on the NSE, gaining 3.69% during the trading session. This positive market reaction reflects investor confidence in the bank's operational performance and growth trajectory, particularly the strong advances growth and improving balance sheet metrics including the enhanced CASA ratio and credit-deposit ratio.
