UCO Bank advances outpace deposits, lifting CD ratio to 82.29%

UCO Bank’s global credit-deposit ratio reached 82.29% in the September 2026 quarter as advances rose 24.7% year on year to Rs 2,87,690 crore, ahead of the 14.4% increase in deposits to Rs 3,49,590 crore. The difference made balance-sheet expansion more loan-led and lifted the ratio from 75.47% a year earlier.

Why did UCO Bank’s credit-deposit ratio rise to 82.29%?

UCO Bank’s credit-deposit ratio rose because advances grew faster than deposits. The ratio, which measures advances as a percentage of deposits, increased to 82.29% in September 2026 from 75.47% in September 2025 and 82.08% in June 2026. This was a 6.82-percentage-point year-on-year increase and a 0.21-percentage-point sequential rise.

Global advances increased by Rs 57,000 crore over the year, reaching Rs 2,87,690 crore from Rs 2,30,690 crore. Global deposits increased by Rs 43,900 crore to Rs 3,49,590 crore from Rs 3,05,690 crore. The larger absolute increase in advances, despite their smaller opening balance, explains the higher credit-deposit ratio.

The quarterly comparison also showed advances marginally outpacing deposits. Global advances rose 5.5% between June 2026 and September 2026, while global deposits rose 5.2%. Total global business, comprising deposits and advances, grew 18.8% year on year to Rs 6,37,280 crore in September 2026.

Which UCO Bank loan segments drove advance growth?

UCO Bank’s domestic advances drove the increase, led by retail, agriculture and micro, small and medium enterprises, or MSME, lending. Domestic advances rose 26.0% year on year to Rs 2,56,700 crore in September 2026, exceeding the 15.2% growth in overseas advances, which reached Rs 31,000 crore.

Retail advances grew 30.2% to Rs 76,817 crore, agriculture lending rose 29.6% to Rs 41,014 crore, and MSME lending increased 20.3% to Rs 50,905 crore. These three categories, referred to by UCO Bank as RAM lending, totalled Rs 1,68,736 crore and accounted for 65.7% of domestic advances at September 2026, compared with 65.2% a year earlier.

Vehicle loans were the fastest-growing specifically listed retail product, rising 61.9% year on year to Rs 9,737 crore. Home loans, the largest identified retail product, increased 20.3% to Rs 36,369 crore. Retail growth was therefore spread across products, although vehicle loans expanded faster than home loans from a smaller balance.

The longer-term data also show advances expanding faster than deposits. From March 2023 to March 2026, global advances recorded a compound annual growth rate, or CAGR, of 17.6%, compared with 9.5% for global deposits. Over the same period, the credit-deposit ratio rose from 64.82% to 80.21% before reaching 82.29% in September 2026.

How is UCO Bank’s deposit mix changing?

UCO Bank’s deposits grew 14.4% year on year, while domestic current and savings account, or CASA, balances increased 10.6%. Global deposits were Rs 3,49,590 crore at September 2026 and domestic CASA was Rs 1,22,259 crore. Domestic CASA represented 36.8% of global deposits, compared with 38.1% in September 2025 and 36.9% in June 2026.

Domestic savings deposits rose 9.1% year on year to Rs 1,03,736 crore, while current deposits increased 19.7% to Rs 18,523 crore. Together, domestic CASA increased by Rs 11,659 crore from Rs 1,10,600 crore a year earlier. That increase was lower than the Rs 43,900 crore expansion in global deposits.

Term deposits were the largest disclosed driver of deposit growth, rising 17.1% year on year to Rs 2,10,200 crore. This exceeded growth in both domestic deposits and domestic CASA. Overseas deposits rose 9.8% year on year to Rs 17,100 crore, although they declined 4.4% from Rs 17,900 crore in June 2026.

What does UCO Bank’s September 2026 balance sheet show?

UCO Bank’s September 2026 balance sheet shows loan growth exceeding funding growth across annual and quarterly measures. Global advances grew 24.7% year on year, 10.3 percentage points faster than the 14.4% increase in global deposits. The comparable quarterly rates were 5.5% for advances and 5.2% for deposits.

Deposits accounted for Rs 3,49,590 crore of total global business of Rs 6,37,280 crore, while advances accounted for Rs 2,87,690 crore. A year earlier, global deposits were Rs 3,05,690 crore and global advances were Rs 2,30,690 crore. The change in the relationship between these two balances produced the rise in the credit-deposit ratio.

Domestic operations accounted for most of the reported balance sheet. Domestic deposits stood at Rs 3,32,500 crore and domestic advances at Rs 2,56,700 crore, compared with overseas deposits of Rs 17,100 crore and overseas advances of Rs 31,000 crore. Domestic advance growth of 26.0% also exceeded domestic deposit growth of 14.6%.

The presentation shows that the domestic CASA share was 38.7% of global deposits in March 2026, compared with 36.8% in September 2026. During that six-month period, global deposits rose from Rs 3,27,600 crore to Rs 3,49,590 crore, while global advances increased from Rs 2,62,800 crore to Rs 2,87,690 crore.

Conclusion

UCO Bank’s September 2026 figures show a balance sheet increasingly driven by lending. Global advances rose 24.7% to Rs 2,87,690 crore, ahead of 14.4% deposit growth to Rs 3,49,590 crore, lifting the credit-deposit ratio to 82.29%. At the same time, domestic CASA growth of 10.6% lagged overall deposit growth and reduced its share of global deposits to 36.8%.

The presentation does not disclose a future deposit target, funding plan or scheduled balance-sheet event. The unresolved matter to watch in subsequent results is whether advances continue to grow faster than deposits, following the September quarter’s 5.5% rise in advances versus 5.2% deposit growth, and whether the domestic CASA share changes from աժամែក36.8%.