UCO Bank (UCOBANK) Q3 25/26 earnings summary

Executive summary

• Business grew 13.25% year-over-year, with global business reaching ₹5,53,680 Cr as of Dec 2025; deposits up 10.64% to ₹3,10,086 Cr and advances up 16.74% to ₹2,43,594 Cr.

• Net profit for the quarter rose 15.65% year-over-year to ₹739 Cr, with operating profit up 6% to ₹1,680 Cr.

• CASA ratio improved to 38.41%, maintained in the 37%-38% range for seven quarters.

• Asset quality improved, with Gross NPA at 2.41% (down 50 bps YoY) and Net NPA at 0.36%.

• Board approved unaudited financial results for Q3 and nine months ended 31 Dec 2025, reviewed by statutory auditors with unmodified opinion.

Financial highlights

• Net Interest Income for the quarter was ₹2,646 Cr, up 11.27% year-over-year; NIM improved to 3.08% globally and 3.27% domestically.

• Operating profit for Q3 FY26 was ₹1,680 Cr, up from ₹1,585.69 Cr in Q3 FY25.

• Cost-to-income ratio reduced by 330 bps to 52.20% year-over-year; stood at 55.50% for the quarter.

• Return on Assets (annualized) was 0.79%-0.83%, and Return on Equity (annualized) was 14.23%.

• Fee-based income grew 30% year-over-year.

Outlook and guidance

• FY 2025-26 guidance: deposit growth 10-12%, credit growth 12-14%, CASA ratio 37-38%.

• NIM (global) expected at 2.8-3%, GNPA below 2.5%, NNPA below 0.35%.

• Credit cost to remain below 1.00%.

• IT and digital spend projected at INR 800-1,000 crores for the next year.

• Bank continues to recognize taxes under the old provisions of the Income Tax Act.