UCO Bank Q1 FY26: Advances up 21%, CD at 82%

Key takeaway from the June 2026 update

State-run UCO Bank reported double-digit growth in both loans and deposits for the quarter ended June 30, 2026, taking total business to INR 605,000 crore. The bank said this growth was led by a sharp rise in advances, while deposits also expanded at a steady pace. As a result, the credit-deposit (CD) ratio moved higher to 82.15%, up from 75.38% a year earlier. The bank also clarified that the figures shared in the business update are provisional and subject to review by statutory central auditors.

Advances rise 21.33% YoY, 3.80% QoQ

UCO Bank’s total advances stood at INR 273,000 crore as of June 30, 2026. This was a 21.33% year-on-year (YoY) increase from INR 225,000 crore as of June 30, 2025. On a sequential basis, advances grew 3.80% quarter-on-quarter (QoQ) from INR 263,000 crore as of March 31, 2026. The pace of advance growth was notably higher than deposit growth, which is also reflected in the rising CD ratio.

Deposits grow 11.04% YoY, 1.53% QoQ

Total deposits increased to INR 332,000 crore as of June 30, 2026. This was up 11.04% YoY compared with INR 299,000 crore a year ago. Deposits were also higher by 1.53% QoQ from INR 327,000 crore as of March 31, 2026. The deposit growth helped expand the balance sheet, although the loan book grew faster during the period.

Total business crosses INR 605,000 crore

The bank said total business (advances plus deposits) stood at INR 605,000 crore as of June 30, 2026. This represented 15.46% YoY growth from INR 524,000 crore and 2.54% QoQ growth from INR 590,000 crore. In its market snapshot, the update described total business crossing the INR 605,000 crore mark as a notable milestone for the quarter. The bank linked the growth to expansion in advances and deposits, with a particular emphasis in commentary on domestic segments.

Domestic book: advances at INR 245,000 crore

UCO Bank reported domestic advances of INR 245,000 crore as of June 30, 2026. This was up 22.50% YoY from INR 200,000 crore as of June 30, 2025. Domestic advances were also 4.70% higher QoQ from INR 234,000 crore as of March 31, 2026. The business update also stated that performance was driven by an expansion in the domestic RAM segment, as per the narrative provided in the market snapshot.

Domestic deposits at INR 314,000 crore

Domestic deposits stood at INR 314,000 crore as of June 30, 2026. The bank reported this was a 12.14% YoY increase and a 2.95% QoQ rise. While the update provided growth rates for domestic deposits, it did not specify the base domestic deposit amounts for the earlier comparable dates in the same line. Still, the domestic deposit number indicates that the bulk of the bank’s deposits remain within India.

CD ratio rises to 82.15%

UCO Bank reported a CD ratio of 82.15% as of June 30, 2026. This compared with 75.38% a year earlier and 80.21% in March 2026. A higher CD ratio typically indicates faster loan growth relative to deposits, and the bank’s YoY numbers show advances rising 21.33% while deposits rose 11.04%. The bank’s disclosure framed the CD ratio move as part of a strong start to the fiscal year, alongside the rise in total business.

Q1 FY26 profitability: net profit at INR 607 crore

For Q1 FY26, UCO Bank reported a 10% YoY rise in net profit to INR 607 crore (INR 607.44 crore in the provided financial table). Net interest income (NII) increased by 6.64% YoY to INR 2,403.23 crore (rounded as INR 2,403 crore in the summary line). The table also showed non-interest income at INR 997.20 crore and profit before tax at INR 946.20 crore for the quarter. The data also indicated provisions (loan loss provision) of INR 616.06 crore.

Other reported metrics: income and operating profit

In a separate regulatory filing summary included in the provided text, total income rose to INR 7,433 crore during the June quarter of FY26, from INR 6,859 crore a year ago. Interest earned improved to INR 6,436 crore, compared with INR 6,024 crore in the year-ago quarter. Operating profit was reported at INR 1,562 crore versus INR 1,321 crore a year earlier. The update also attributed profit support to treasury performance, citing treasury earnings of INR 198 crore versus INR 90 crore a year ago.

Asset quality and capital position: March 2026 reference points

In the bank’s financial results presentation for the quarter and year ended March 31, 2026, UCO Bank reported gross NPA at 2.17% and net NPA at 0.28%. It also reported a full-year net profit of INR 2,768 crore and net interest income of INR 10,197 crore for the year ended March 31, 2026. For capital metrics (as listed in the provided highlights), the bank reported a capital adequacy ratio of 18.39% and a Tier 1 capital ratio of 16.36%. These numbers provide context for the June 2026 quarter update, though they relate to the March 2026 reporting set.

Summary table: business and key ratios (June 2026)

Market impact: what the numbers signal

The most direct market signal from the update is the stronger growth in advances than deposits, which pushed the CD ratio to 82.15% from 75.38% a year earlier. The update also shows that domestic advances grew faster than overall advances on a YoY basis (22.50% for domestic advances versus 21.33% for total advances), highlighting where balance-sheet momentum is concentrated. On earnings, the quarter’s net profit of about INR 607 crore and NII of about INR 2,403 crore indicate that profitability growth continued YoY, even as sequential comparisons in the provided table show declines versus the immediately preceding quarter. The bank also flagged that the business numbers are provisional, which is relevant for investors tracking final audited disclosures.

Analysis: why the CD ratio and domestic growth matter

The June 2026 snapshot underlines a common theme for lenders: loan growth that outpaces deposit growth changes the funding mix and raises the importance of deposit mobilisation. The reported QoQ rise in deposits (1.53%) is meaningfully lower than the QoQ rise in advances (3.80%), which explains the higher CD ratio compared with March 2026. The emphasis on domestic RAM expansion, as noted in the market snapshot narrative, points to the bank’s focus on segments that can drive scale, though the update does not provide segment-wise book sizes in the same disclosure. Separately, the earlier March 2026 asset quality metrics (gross NPA 2.17% and net NPA 0.28%) offer background on credit quality as the bank grows advances.

Conclusion

UCO Bank’s June 30, 2026 business update showed total business at INR 605,000 crore, driven by advances of INR 273,000 crore and deposits of INR 332,000 crore, with the CD ratio rising to 82.15%. The bank also reported Q1 FY26 net profit of about INR 607 crore and NII of about INR 2,403 crore. The lender has said the business figures are provisional and subject to statutory audit review, which will be a key check point for the market as subsequent disclosures are released.