UCO Bank (UCOBANK) Q1 25/26 earnings summary

Executive summary

• Total business as of June 30, 2025, reached ₹5,23,736 crore, up 13.51% YoY, with deposits at ₹2,98,635 crore (up 11.37%) and advances at ₹2,25,101 crore (up 16.48%).

• Net profit for the quarter was ₹607 crore, up 10.25% YoY, and operating profit rose 18.24% to ₹1,562 crore.

• Asset quality improved: gross NPA at 2.63% (down 69 bps YoY), net NPA at 0.45% (down 33 bps YoY), PCR at 96.88%.

• Digital transformation accelerated, with 22 digital journeys live, 8 more in pipeline, and significant YoY growth in digital advances and account openings.

• Board approved unaudited standalone results, security coverage certificate, and unmodified auditor opinion.

Financial highlights

• Net interest income rose 6.64% YoY to ₹2,403 crore; non-interest income up 20% YoY to ₹997 crore.

• Cost-to-income ratio improved to 54.06% from 57.23% YoY.

• Return on assets (annualized) was 0.71%; return on equity at 11.25%.

• Gross NPA ratio improved to 2.63% from 3.32% YoY; net NPA at 0.45%.

• Earnings per share (not annualized) at ₹0.48; book value per share at ₹18.50.

Outlook and guidance

• Credit growth guidance maintained at 12%-14% for FY26; deposit growth at 10%-12%.

• CASA ratio guidance at 37%-38%; current level slightly below 37% but expected to improve.

• ROA expected to reach or cross 1% in the next financial year as asset quality stabilizes.

• Slippage ratio target remains at 1%-1.25% for the year.

• NIM (global) targeted at 3-3.10%; credit cost to remain below 1%.