UCO Bank Q4 FY26: Profit up 22%, GNPA 2.17%

Key takeaway from the Q4 FY26 call

UCO Bank used its Q4 FY26 earnings call to highlight faster-than-guided credit growth, steady deposit momentum, and a further improvement in asset quality. For the full year, the bank reported operating profit of ₹6,429 crore and net profit of ₹2,768 crore. For the March quarter, net profit came in at ₹801 crore, up 22% year-on-year.

Management also drew attention to the mix of growth, with retail, agriculture and MSME (RAM) advances expanding at a faster pace than the overall book. Alongside balance sheet growth, the bank indicated continued focus on metrics such as CASA, net interest margin improvement, recoveries, and credit cost control.

Total business expands to ₹5,90,314 crore

UCO Bank reported total business of ₹5,90,314 crore, reflecting 14.59% year-on-year growth. The growth was supported by a rise in both advances and deposits.

Gross advances stood at ₹2,62,752 crore, up 19.44% year-on-year. Deposits rose to ₹3,27,563 crore, up 11.59% year-on-year. The bank framed this as an outcome that exceeded its stated annual guidance for both deposits and credit.

Deposit profile: CASA growth and ratio

Within deposits, the bank reported CASA growth of 12.46% year-on-year. Savings deposits grew 11.878%, while current account balances grew 16.77%.

The CASA ratio was reported at 38.65%, which management said was above its guidance range of 37% to 38%. The bank added that the CASA ratio improved by 75 basis points over the previous year.

Advances mix: RAM segment and retail momentum

Management highlighted that the RAM segment grew by over 24% during the year. RAM advances were reported at ₹1,52,324 crore, representing 24.23% year-on-year growth.

Within the RAM segment, retail advances grew by over 26%, agriculture advances grew by 26%, and MSME advances grew by 19%. In retail, housing loans grew by around 19%, while car loans grew by around 70% to 71%, indicating a sharp acceleration in that product line.

Asset quality improves; GNPA at 2.17%

On asset quality, UCO Bank reported gross NPA (GNPA) of 2.17%, an improvement of 52 basis points over the previous year.

The bank also reported a provisional provision coverage ratio of 98%. Management referred to a decline in slippages over the past few years, noting that a metric previously around 1.7% to 1.75% had come down to below 1%.

Profitability: operating profit ₹6,429 crore; Q4 net profit ₹801 crore

For FY26, operating profit was ₹6,429 crore, a growth of 6.49% year-on-year. Full-year net profit was ₹2,768 crore, up 13.21% year-on-year.

For Q4 FY26, net profit was ₹801 crore, up 22% year-on-year. The bank also pointed to operating efficiency trends, including a lower cost-to-income ratio.

Operating efficiency: cost-to-income and fee income

UCO Bank reported cost-to-income ratio of 52.66%, improving by 581 basis points over the previous year.

Fee-based income (reported as “P based income”) rose 32% year-on-year to ₹516 crore, compared with ₹389 crore in the previous period referenced by the bank.

Guidance vs actual: FY26 outperformance and FY27 targets

Management compared outcomes with guidance for FY26:

• Deposit growth guidance was 10% to 12%; achievement was 11.59%.
• Credit growth guidance was 12% to 14%; achievement was 19.44%.
• CASA guidance was 37% to 38%; actual was 38.65%.

On recoveries and upgrades, guidance was ₹2,200 crore to ₹2,700 crore, while the actual reported figure was ₹2,944 crore.

For the current year guidance, the bank reiterated deposit growth of 10% to 12%, credit growth of 12% to 14%, and CASA ratio of 37% to 38%. It also guided RAM at 62% to 65%, credit-deposit ratio at 80% to 82%, and credit cost at less than 0.75%.

Capital position, dividend, and network footprint

The bank reported a capital adequacy ratio of 18.61%, with Tier 1 capital at 16.59%.

The board approved a dividend of 4.40%, which the bank described as 44 paise per equity share, subject to shareholder approval at the ensuing annual general meeting. Management stated that this corresponds to a dividend payout of 20%.

UCO Bank reported it operates 3,412 branches, with two overseas branches (Hong Kong and Singapore) and one representative office in Iran.

Productivity and digital spending

UCO Bank reported business per employee of ₹28 crore, compared with ₹24 crore a year earlier. Business per branch was ₹173 crore, compared with ₹155 crore a year earlier.

On technology spending, the bank stated that around ₹900 crore had been spent, and that a budget of more than ₹1,000 crore has been approved for the current financial year. It also provided a three-year spend trend: ₹576 crore in FY24, ₹642 crore in FY25, and ₹899 crore in FY26.

Data table: key reported metrics (₹ crore unless stated)

Market impact and what investors tracked

The disclosures provide investors multiple checkpoints: high credit growth relative to guidance, deposit growth in the guided band, and a steady CASA ratio above the bank’s target range. The combination of lower GNPA and a high provisional provision coverage ratio adds detail to the bank’s asset quality position as disclosed.

Separately, a market update referenced in the provided material noted that the stock rose 0.84% to ₹24.10 on the BSE (context: an earlier update tied to Q3 FY26 numbers). The Q4 call itself focused on operating performance and guidance rather than any stock price commentary.

Conclusion

UCO Bank closed FY26 with 14.59% growth in total business and 19.44% growth in advances, while reporting GNPA of 2.17% and FY net profit of ₹2,768 crore. For FY27, the bank maintained deposit and credit growth guidance of 10% to 12% and 12% to 14%, respectively, alongside targets for CASA, RAM mix, CD ratio, and credit cost.