Earnings Review
Other income lifts UCO Bank's PAT; high provisions weigh
This story was originally published at 16:30 IST on 21 July 2025
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--UCO Bank holds Covid-19 related provision of INR 5.30 bln as on Jun 30
--UCO Bank Apr-Jun other income INR 9.97 bln vs INR 8.35 bln year ago
--UCO Bank Apr-Jun NPA provisions INR 4.63 bln vs INR 3.97 bln year ago
--UCO Bank Apr-Jun provisions INR 6.16 bln vs INR 4.59 bln year ago
--UCO Bank net NPA ratio 0.45% as on Jun 30 vs 0.50% qtr ago, 0.78% year ago
--UCO Bank gross NPA ratio 2.63% as on Jun 30 vs 2.69% qtr ago, 3.32% yr ago
--UCO Bank Apr-Jun total income INR 74.33 bln vs INR 68.59 bln year ago
--UCO Bank Apr-Jun net profit INR 6.07 bln vs INR 5.51 bln year ago
--UCO Bank Basel-III capital adequacy ratio 18.39% as on Jun 30
--UCO Bank: Total deposits at INR 2.99 tln as on Jun 30, up 11.4% YoY
--UCO Bank: Gross advances at INR 2.25 tln as on Jun 30, up 16.5% YoY
--UCO Bank: Retail advances at INR 561.95 bln as on Jun 30, up 30.7% YoY
--UCO Bank: Apr-Jun net interest income INR 24.03 bln, up 6.6% YoY
--UCO Bank: Credit-deposit ratio at 75.38% as on Jun 30
--UCO Bank: Provision coverage ratio at 96.88% as on Jun 30
--UCO Bank: Aim for 10-12% growth in deposits in FY26
--UCO Bank: Aim for 12-14% credit growth in FY26
--UCO Bank: CASA ratio at 36.91% as on Jun 30 vs 37.91% quarter ago
--UCO Bank Apr-Jun cost of deposits 4.84% vs 4.90% qtr ago, 4.79% yr ago
By Priyasmita Dutta and Pratiksha
NEW DELHI – UCO Bank's net profit for the quarter ended June rose on year due to an increase in other income. However, a sharp rise in the lender's provision ate into its bottom line. The Kolkata-based lender's bottom line for Apr-Jun rose 10.3% on year to INR 6.07 billion. However, the net profit fell 7% on quarter.
The state-owned bank's total income rose 8.4% on year to INR 74.33 billion for the reporting quarter, primarily due to a 19.4% on-year increase in other income to INR 9.97 billion.
The bank's provisions and contingencies rose 34.3% on year to INR 6.16 billion in the June quarter. The provisions on non-performing assets rose to INR 4.63 billion from INR 3.97 billion reported a year ago. The Kolkata-based lender held COVID-19-related provisions worth INR 5.30 billion as of Jun. 30, it said.
At the end of the June quarter, the bank's net non-performing asset ratio improved to 0.45% from 0.50% quarter ago and 0.78% a year ago. Gross non-performing asset ratio improved to 2.63% from 2.69% a quarter ago and 3.32% a year ago. The provision coverage ratio was 96.88% end of June, 112 basis points higher from the year ago period.
At 1354 IST, shares of the bank traded at INR 31.75 on the National Stock Exchange, almost flat from the previous close. Like many other banks, especially public sector banks, treasury income aided the UCO Bank in the June quarter with income under this head rising 19.5% on year to INR 4.85 billion. The net interest margin of the bank moderated to 2.96% in Apr-Jun from 2.99% a quarter ago and 3.09% a year ago.
Interest income has been a big drag for the bank, rising only 6.8% on year to INR 64.36 billion. Interest expense rose at a slightly higher rate of 7% on year to INR 40.33 billion. Sequentially, the interest income fell 4.6% and interest expended fell 0.3%. The net interest income during the June quarter was up 6.6% on year at INR 24.03 billion.
The bank's business performance was steady, with global advances and global deposits rising nearly 16% on year and 11% on year, respectively, to INR 2.25 trillion and INR 2.99 trillion as of Jun. 30. The credit-deposit ratio at the end of June was 75.38%, higher than 74.94% end of March and 72.07% end of June last year. The cost of deposits during the quarter under review was 4.84%, lower than 4.90% in Jan-Mar, but higher than 4.79% in June quarter last year.
Within global advances, the gross domestic advances were up almost 20% on year at INR 2 trillion as of Jun. 30 and the international gross advances fell 5.8% to INR 251.23 billion. Retail advances were up nearly 31% on year at 561.95 billion at the end of June. Within this, the bank's home loan book grew nearly 18% on year to INR 288.35 billion. The bank's vehicle book grew sharply 67% on year to INR 52.82 billion as on Jun. 30, while agriculture loan book grew over 15% on year to INR 299.61 billion, and the micro, small and medium enterprise book increased over 20% on year to INR 397.71 billion. The corporate book grew 15% on year to INR 740.51 billion.
Within global deposits, the domestic deposits were up 10% on year at INR 2.80 trillion and international deposits were up nearly 38% on year at INR 185.43 billion. The domestic current account savings account deposits ratio fell 100 basis points on quarter, and 171 bps on year to 36.91%. The capital adeqaucy ratio based on Basel III norms was 18.39% at the end of June, marginally lower than 18.49% a quarter ago and 17.09% a year ago.
In 2025-26 (Apr-Mar), the bank projected deposits to grow 10-12% on year and advances to grow 12-14% on year, the bank said in an investor presentation. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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