UCO Bank posted a net profit of ₹790 crore (₹7.9 billion) in the second quarter of FY27, marking a 27% increase year-on-year from ₹620 crore. The public sector lender also witnessed robust top-line growth, with revenue rising 12% YoY to ₹7,300 crore against ₹6,537 crore in the corresponding period last year.

Asset quality metrics improve

The bank demonstrated continued improvement in its asset quality during the quarter. The Gross Non-Performing Assets (GNPA) ratio declined to 1.96% from 2.08% in the previous quarter (QoQ). Similarly, the Net Non-Performing Assets (NNPA) ratio improved significantly, dropping to 0.18% from 0.25% in the prior quarter. The Provisioning Coverage Ratio stood at 98.36% as on September 30, 2026, up from 96.99% a year earlier.

Financial performance overview

The following table summarizes the key financial metrics for Q2FY27:

Segment performance and balance sheet

Retail Banking Operations emerged as the largest revenue contributor for the quarter, generating ₹3,239 crore, followed by Corporate Banking at ₹3,004 crore and Treasury Operations at ₹1,925 crore. In terms of profitability before tax, Treasury Operations led with ₹664 crore, while Retail and Corporate segments contributed ₹237 crore and ₹157 crore respectively.

The bank's total assets grew to ₹4,19,957 crore as on September 30, 2026, from ₹3,69,475 crore a year ago. Advances expanded significantly to ₹2,82,571 crore, reflecting strong credit growth. Deposits increased to ₹3,49,590 crore, driven by a half-yearly increase of ₹22,028 crore. The Capital Adequacy Ratio under Basel III stood at 18.85%, comfortably above regulatory requirements.

What the numbers show

A distinct divergence appears between the bank's profitability trajectory and its asset quality trends. While net profit surged 27% YoY, driven by a strong revenue base of ₹7,300 crore, the asset quality metrics are reported on a sequential (QoQ) basis rather than YoY. This suggests that while earnings power has expanded significantly compared to the same period last year, the reduction in bad loans is being measured against immediate recent history, indicating steady but incremental cleanup efforts alongside robust income generation.

Additionally, the bank's operating profit margin dipped to 22.91% in Q2FY27 from 32.36% in Q1FY27, primarily due to higher provisions. Provisions for standard assets jumped to ₹663 crore in the first half of FY27 from ₹85 crore in the first half of FY26, signaling a proactive stance on building buffers despite improving NPA ratios. The shift to the lower tax regime under Section 115BAA resulted in a one-time charge of ₹1,237 crore in Q1FY27, which impacts the comparative H1 figures but establishes a lower effective tax rate going forward.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE691A01018/bb826428-c1cf-4f08-90b3-2e29b9f7cf07.pdf

UCO Bank reported a 24.68% YoY rise in advances to ₹2.88 lakh crore in Q2FY27, with total business growing 18.84% during the same period.

Key business metrics

The bank's performance in Q2FY27 reflected broad-based growth across its core business parameters. The following table summarises the headline figures reported for the quarter, including updated total business and deposit figures.

Quarterly progression

The bank disclosed provisional figures for the quarter ended September 30, 2026, alongside reviewed figures for the preceding quarters. The data indicates a steady upward trajectory in both advances and deposits over the last two quarters.

What the Numbers Show

Advances grew at a faster pace (24.68%) than deposits (14.05%), leading to an expansion in the Credit-Deposit (CD) ratio to 82.37% from 75.47% a year earlier. This divergence suggests the bank is deploying its growing deposit base more aggressively into lending, potentially aiming for higher yield assets or reflecting stronger credit demand relative to liability mobilisation.