UCO BANK gross NPA falls to 1.96%, PCR reaches 98.36%

UCO BANK reduced its gross non-performing asset (NPA) ratio to 1.96% in September 2026 from 2.56% a year earlier, while its net NPA ratio fell to 0.18%. UCO Bank’s provision coverage ratio (PCR), including technical write-offs, reached 98.36%, alongside a Rs 5,632 crore gross NPA balance and Rs 513 crore of net NPAs.

How did UCO Bank’s NPA ratios change?

UCO Bank’s gross NPA ratio fell by 0.60 percentage points year on year and 0.12 percentage points quarter on quarter to 1.96% in September 2026. Its net NPA ratio declined to 0.18%, compared with 0.43% in September 2025 and 0.25% in June 2026. The gross NPA balance was Rs 5,632 crore, down from Rs 5,895 crore a year earlier and Rs 5,667 crore in June 2026.

The longer series also shows a lower stressed-loan stock. Gross NPAs were Rs 6,463 crore, or 3.46% of advances, in March 2024; by September 2026, they were Rs 5,632 crore and 1.96%. Net NPAs declined from Rs 1,622 crore and 0.89% in March 2024 to Rs 513 crore and 0.18% in September 2026.

What drove UCO Bank’s quarterly gross NPA reduction?

UCO Bank’s gross NPA balance declined by Rs 35 crore in the September 2026 quarter because total reductions of Rs 584 crore exceeded fresh additions of Rs 549 crore. Cash recovery and upgradation accounted for Rs 302 crore of reductions, while fresh slippages, or newly classified NPAs, amounted to Rs 538 crore. Additions to existing NPAs were Rs 11 crore.

The September 2026 quarter recorded larger flows than June 2026. Total reductions increased from Rs 467 crore in June to Rs 584 crore, while fresh additions rose from Rs 444 crore to Rs 549 crore. The resulting net decrease was Rs 35 crore in September, compared with Rs 23 crore in June.

Recovery in written-off accounts and recovery interest was Rs 337 crore in September 2026, down from Rs 1,054 crore in June 2026. Total recovery and upgradation, including cash recovery and upgradation, was Rs 639 crore in September versus Rs 1,271 crore in June. The annualised slippage ratio rose to 0.85% from 0.63% quarter on quarter, but remained below 1.05% in September 2025.

How much provision coverage did UCO Bank report?

UCO Bank reported PCR of 98.36% including technical write-offs in September 2026, up from 96.99% in September 2025 and 97.85% in June 2026. PCR excluding technical write-offs reached 90.88%, compared with 83.68% a year earlier and 88.08% in the preceding quarter. The higher coverage coincided with net NPAs declining to Rs 513 crore from Rs 962 crore in September 2025.

Annualised credit cost was 0.65% in the September 2026 quarter, compared with 0.39% in June 2026 and 0.72% in September 2025. Thus, the reported coverage measures improved both year on year and quarter on quarter, while the quarterly credit-cost measure increased from the June level.

Which UCO Bank loan segments had the highest NPA ratios?

UCO Bank’s agriculture portfolio had the highest reported gross NPA ratio at 8.73% in September 2026, with Rs 3,580 crore of gross NPAs on Rs 41,014 crore of advances. The ratio fell from 10.81% in September 2025, although the gross NPA balance increased from Rs 3,421 crore. Agriculture generated Rs 205 crore of fresh additions during the September quarter, compared with Rs 73 crore in June 2026.

Micro, small and medium enterprises (MSME) recorded a 2.62% gross NPA ratio in September 2026, down from 4.63% in September 2025 and 3.06% in June 2026. MSME gross NPAs fell to Rs 1,332 crore from Rs 1,957 crore a year earlier, while advances increased to Rs 50,905 crore from Rs 42,309 crore. Fresh MSME additions were Rs 214 crore in September 2026, compared with Rs 229 crore in June 2026.

Retail credit reported a 0.80% gross NPA ratio on Rs 76,817 crore of advances in September 2026, compared with 0.72% on Rs 58,987 crore a year earlier. Retail gross NPAs rose to Rs 611 crore from Rs 426 crore, while fresh retail additions were Rs 109 crore. Within retail, personal-loan NPAs were 2.05% of that portfolio, up from 0.84%, whereas home-loan NPAs fell to 0.86% from 0.92%.

What does UCO Bank’s asset classification show?

UCO Bank reported standard assets of Rs 2,82,058 crore, or 98.04% of total advances, in September 2026. This compared with Rs 2,24,807 crore, or 97.44%, in September 2025. Total advances increased to Rs 2,87,690 crore from Rs 2,30,702 crore over the same period, while the sub-standard asset share declined to 0.45% from 0.60%.

Doubtful assets represented 1.02% of advances in September 2026, down from 1.35% a year earlier, and loss assets represented 0.49%, down from 0.61%. Loss assets were Rs 1,405 crore in September 2026 versus Rs 1,407 crore in September 2025. Corporate lending had a 0.12% gross NPA ratio and overseas advances of Rs 30,992 crore had zero reported gross NPAs.

Conclusion

UCO Bank’s September 2026 results show a lower gross NPA ratio, lower net NPAs and higher provision coverage. Gross NPAs declined to Rs 5,632 crore and 1.96% of advances, while total quarterly reductions of Rs 584 crore exceeded Rs 549 crore of fresh additions. PCR including technical write-offs rose to 98.36%.

The next reported trend to watch is whether recoveries and upgrades continue to offset fresh slippages. Agriculture remained the highest-NPA reported segment at 8.73%, and the annualised slippage ratio increased to 0.85% in September 2026 from 0.63% in June 2026, despite the rise in PCR.