UCO Bank Board of Directors approved raising foreign currency funds up to USD 1.00 Billion through its Medium Term Note (MTN) Programme. The approval was granted during the board meeting held on August 24, 2026.

The issuance will be executed in one or more tranches by issuing debt instruments under the existing MTN framework. This move follows the bank’s earlier disclosure on August 19, 2026, regarding the agenda for the board meeting.

Meeting Details

The board meeting commenced at 2:45 pm and concluded at 4:50 pm. The outcome was communicated to the National Stock Exchange of India Ltd and BSE Limited pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Vikash Gupta, Company Secretary, signed the notice dated August 24, 2026.

UCO Bank has revised its Treasury Bill Linked Rate (TBLR) and Government Security (G-Sec) linked benchmark rates, effective August 7, 2026. The Asset Liability Management Committee (ALCO) reduced the 3-month TBLR by 5 basis points to 5.25% and the 12-month TBLR by 15 basis points to 5.65%. Conversely, the bank increased the 1-year UCO G-Sec Rate to 5.80% and the 10-year G-Sec Rate YTM (Annualized) Par yield to 6.96%. These adjustments alter the cost of borrowing for customers linked to these specific benchmarks, while other key rates such as the Marginal Cost of Funds based Lending Rate (MCLR) and Repo Linked Rates remain static.

The revision reflects a mixed approach to benchmark pricing, with short-term treasury-linked rates seeing a reduction while government security-linked rates experienced an increase. The ALCO’s decision impacts loan pricing for borrowers tied to TBLR and G-Sec frameworks, whereas those linked to MCLR, Base Rate, or BPLR will see no change in their interest rate structures. The bank communicated these updates to the National Stock Exchange of India Ltd. and BSE Limited on August 7, 2026.

Revised Benchmark Rates

The following table details the changes in TBLR and G-Sec linked rates effective August 7, 2026:

Unchanged Benchmarks

Several other benchmark rates were reviewed but kept unchanged by the ALCO:

• MCLR: Overnight at 7.90%, One month at 8.20%, Three month at 8.45%, Six month at 8.70%, and One year at 8.80%.
• TBLR (6 month): Remains at 5.50%.
• Repo Linked Rates: UCO Float stays at 8.05% and UCO Prime remains at 5.25%.
• Base Rate: Continues at 9.60%.
• BPLR: Remains at 14.25%.

What the Numbers Show

The divergence between TBLR and G-Sec linked rates suggests a nuanced shift in the bank’s funding cost perception across different tenors and security types. While the reduction in 3-month and 12-month TBLR indicates lower costs associated with short-term treasury bills, the increase in G-Sec linked rates implies higher yields on government securities. This split may lead to varied refinancing outcomes for borrowers depending on their specific loan linkage, with TBLR-linked loans becoming slightly cheaper while G-Sec-linked loans face marginally higher costs.