UCO Bank Q3 Net Profit Jumps 16% to ₹740 Crore

Mumbai: UCO Bank, a public sector lender, reported a 15.8% year-on-year increase in standalone net profit to ₹739.51 crore for the quarter ended December 31, 2025 (Q3 FY26). The results were approved by the Board of Directors in a meeting held today.

The bank's performance was driven by a significant reduction in provisions and an improvement in asset quality, even as total income saw a modest rise.

Financial Performance: Lower Provisions Boost Profit

Net Profit: ₹739.51 crore (Q3 FY25: ₹638.83 crore)
Total Income: ₹7,521.16 crore (Q3 FY25: ₹7,405.89 crore)
Net Interest Income (NII): Calculated at ₹2,645.72 crore (Interest Earned ₹6,651.44 crore - Interest Expended ₹4,005.72 crore).
Provisions: Provisions and contingencies declined by 10.9% to ₹525.12 crore from ₹589.51 crore a year ago.
Operating Profit: Improved to ₹1,680.24 crore from ₹1,585.69 crore in Q3 FY25.

Also Read: HDFC Bank Q3 FY26 Net Profit Rises 11.5% to ₹18,654 Crore; Announces Senior Management Change

Key Positive: Sharp Improvement in Asset Quality

The bank showed a marked improvement in its asset quality metrics:

Gross NPA Ratio: Improved to 2.41% as of December 31, 2025, from 2.97% a year ago.
Net NPA Ratio: Improved significantly to 0.36% from 0.63% a year ago.
Provision Coverage Ratio (PCR): Stood strong at 91.32%.

Capital Position Remains Robust

Capital Adequacy Ratio (CAR) - Basel III: Remained healthy at 17.43%, with a Common Equity Tier 1 (CET1) ratio of 15.18%.

Other Highlights from the Filing

The bank continues to hold a Covid-19 related contingency provision of ₹530 crore.
It has an aggregate deferred tax asset of ₹4,955.65 crore.
Pursuant to the new Labour Codes, the bank stated that detailed rules are yet to be notified and any consequential financial impact will be accounted for upon such notification.

Analyst View

"UCO Bank's Q3 results reflect a classic public sector bank recovery story – lower slippages leading to reduced provisions, which directly boost profitability," said a banking sector analyst. "The consistent improvement in GNPA and NNPA ratios is a positive sign of sustained asset quality repair."

Looking Ahead

With a cleaner balance sheet, improved capital adequacy, and a focus on recovery, UCO Bank appears to be strengthening its foundation for sustainable growth. The market will watch for the bank's ability to maintain this momentum in credit growth and further improve its return ratios.

About UCO Bank: UCO Bank is a scheduled commercial bank with a pan-India presence. The Government of India holds a 90.95% stake in the bank.