UCO Bank (UCOBANK) Q4 25/26 earnings summary

Executive summary

• Business grew 14.95% year-over-year, reaching ₹590,314 Cr, with gross advances up 19.44% and deposits up 11.59%.

• Net profit for FY 2025-26 rose 13.21% YoY to ₹2,768 Cr; Q4 net profit up 22% YoY and 8.39% sequentially.

• Asset quality improved: gross NPA at 2.17% (down 52 bps YoY), net NPA at 0.27% (down 23 bps YoY), and PCR at 97.79%.

• CASA ratio improved to 38.65%, up 75 bps YoY, with strong growth in both savings and current accounts.

• Board approved a dividend of ₹0.44 per share (about 20% payout), subject to shareholder approval.

Financial highlights

• Net Interest Income for FY 2025-26 increased 5.89% YoY to ₹10,197 Cr.

• Operating profit for FY 2025-26 was ₹6,429 Cr, up 6.49% YoY.

• Cost-to-income ratio improved to 52.66%-52.92% for FY 2025-26.

• Return on Assets (annualized) improved to 0.87%; Return on Equity at 12.26%.

• Fee-based income grew 32% YoY to ₹516 Cr.

Outlook and guidance

• FY 2026-27 guidance: deposit growth 10%-12%, credit growth 12%-14%, CASA 37%-38%, RAM 62%-65%, CD ratio 80%-82%.

• Credit cost guidance below 0.75%, NIM global 2.8%-2.9%, gross NPA below 2%, net NPA below 0.2%, slippage ratio below 1%.

• Recovery and upgradation target set at ₹2,000-2,500 Cr.

• Plans to raise up to ₹2,700 Cr via equity and ₹5,000 Cr through Basel III bonds in FY 2026-27.

• Dividend payout proposed, reflecting confidence in sustained profitability.