Uco Bank's Q1FY26 results: Profit jumps 10% to ₹607 crore, NPAs decline

Uco Bank's net profit rises by 10% YoY to ₹607 crore in Q1 FY26, driven by strong growth in both interest and non-interest income, with improved asset quality

Kolkata-based state-owned Uco Bank on Monday reported a 10 per cent increase in net profit to ₹607 crore for the first quarter of the financial year 2025-26 (FY26) from the ₹551 crore in FY25.

 

The bank's asset quality improved as gross non-performing assets (NPAs) declined to 2.63 per cent of gross advances at the end of the June quarter, from 3.32 per cent a year ago. Similarly, net NPAs, or bad loans, declined to 0.45 per cent from 0.78 per cent in the year-ago period.

 

However, provisions for bad loans rose to ₹463 crore during the first quarter, compared to ₹397 crore in the same period a year ago. Provision Coverage Ratio (PCR) improved to 96.88 per cent from 95.76 per cent.

 

 

Ashwani Kumar, Uco bank’s managing director and chief executive officer, in the post results press conference, said that the growth is primarily attributed to a rise in both total interest income and non-interest income.

 

“Interest income from advances alone increased from around ₹6,000 crore to ₹6,400 crore year-on-year. Additionally, operating expenses increased by only 4 per cent, disproportionately lower than required, further contributing to profitability,” he said.

 

At the same time, Return on Assets (ROA) improved marginally to 0.71 per cent in June from 0.7 per cent a year ago. Capital adequacy ratio of the bank rose to 18.39 per cent, from 17.09 per cent in the same quarter of FY25.

 

As on June 30, the bank had a network of 3,305 domestic branches and two overseas branches each in Hong Kong and Singapore and one representative office in Iran. Out of the total branches, the bank has 2,033 (61 per cent) branches in rural and semi-urban areas. The bank has 2,575 ATMs and 10,920 BC points, making the total number of 16,803 touch points as on the same date.

 

The gross advances grew 16.48 per cent Y-o-Y to ₹225,101 crore as on June 30, as against ₹193,253 crore as on June 2025. Sixty RAM (Retail, Agri & MSME) business stood at ₹125,927 crore in Q1FY26, against ₹101,986 crore as on Q1FY25, registering a growth of 23.47 per cent on a Y-o-Y basis. The bank intends to grow its corporate loan book in the range of 12-14 per cent in the upcoming quarters, Kumar said. 

He stated that lending for startups is expected to gain traction with clarity on guarantee.