UCO Bank (UCOBANK) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 global business reached ₹637,280 crore, up 18.81% YoY; deposits were ₹349,590 crore (+14.36%) and advances ₹287,690 crore (+24.70%).

• Net profit rose 26.77% YoY to ₹786 crore; asset quality improved, with GNPA at 1.96% and NNPA at 0.18%.

• Management said growth and asset-quality outcomes exceeded initial guidance and expects advances growth to remain above the 12%-14% target.

Financial highlights

• Q2 operating income was ₹8,174 crore (+10.15% YoY); operating profit was ₹1,872 crore (+16.08%) and net profit ₹786 crore (+26.77%).

• Net interest income rose 13.96% YoY to ₹2,886 crore; fee-based income increased 34.66% to ₹558 crore.

• H1 FY27 operating profit was ₹4,682 crore (+47.44% YoY), net profit ₹1,442 crore (+17.52%) and NII ₹5,695 crore (+15.37%).

• Q2 non-interest income was ₹888 crore, up 0.47% YoY and down 47.32% QoQ; interest income rose 11.46% YoY to ₹7,286 crore.

• Q2 total income was ₹8,174 crore versus ₹7,421 crore YoY; H1 total income was ₹16,856 crore versus ₹14,855 crore.

Outlook and guidance

• FY27 guidance: deposit growth 10%-12%, credit growth 12%-14%, CASA 37%-38%, RAM 62%-65%, CD ratio 80%-82%, global NIM 2.8%-2.9% and credit cost below 0.75%; September actuals exceeded several targets.

• Management aims to exceed advances guidance, with growth across RAM and corporate lending; no revised growth rate was forecast.

• Management expects NIM to remain above guidance; FY cost-to-income is expected near 50%, with efforts to move below 50%.

• Credit cost was 0.65%; management expects it below 0.75% for FY27. Written-off-account recoveries are expected to normalize near ₹300 crore per quarter.

• No immediate deposit-rate increase was planned; future repricing depends on deposit mobilization needs and market conditions.