UCO Bank Q2FY26 results: Net profit increases 2.8% to ₹620 crore

The bank's asset quality improved as gross non-performing assets (NPAs) declined to 2.56 per cent of gross advances at the end of the September quarter from 3.18 per cent a year ago

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Kolkata-based state-owned UCO Bank on Friday reported a 2.8 per cent increase in net profit to ₹620 crore for the second quarter of the financial year 2025-26 (Q2FY26) from the ₹603 crore in the same period last year.

 

The bank’s asset quality improved as gross non-performing assets (NPAs) declined to 2.56 per cent of gross advances at the end of the second quarter, from 3.18 per cent a year ago. Similarly, net NPAs, or bad loans, declined to 0.43 per cent from 0.73 per cent in the year-ago period. The Provision Coverage Ratio stood at 96.99 per cent as of September 2025.

 

Ashwani Kumar, Uco Bank’s managing director and chief executive officer, in the post results press conference, said that the bank is trying to give cushion to the MSMEs sector from the United States tariff shock.

 

“We are engaging with the industry as much as possible. Whatever assistance in terms of relaxation we can give we are trying to give. However, any major assistance will come from the government side only. We do not see a major impact on the growth of giving loans to the MSMEs sector from this, however we are cautious about it,” he said.

 

The Retail, Agriculture, and MSME (RAM) segment registered a year-on-year growth of 22.87 per cent, reaching ₹1,32,946 crore as of September 30, 2025. Within this segment, retail advances grew by 25.40 per cent year-on-year to ₹58,987 crore, agriculture advances increased by 17.28 per cent to ₹31,650 crore, and MSME advances rose by 23.80 per cent to ₹42,309 crore.

 

The bank’s net interest income (NII) grew by 8.36 per cent on Y-o-Y to ₹4936 crore for the half year ended September 2025 as against ₹4555 crore for the half year ended September 2024. Net interest margin (NIM)-global stood at 2.90 per cent and domestic NIM at 3.08 per cent for the second quarter.

 

As on September 30, UCO Bank had a network of 3,322 domestic branches and 2 overseas branches each at Hong Kong and Singapore and 1 Representative Office in Iran. Out of the total branches, Bank has 2,037 (61 per cent) branches in rural & semi-urban areas. Bank has 2,607 ATMs and 11,108 BC Points making the total number of 17,040 touch points.

 

The bank’s business per employee improved to ₹25.17 crore as on September 2025 as against ₹22.10 crore for the same period of preceding year.