UCO Bank has officially submitted the transcript of its Post Earnings Call with analysts to the National Stock Exchange and BSE Limited, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The earnings call was conducted on April 27, 2026, and moderated by Antique Stock Broking Limited.

Management Participation and Call Structure

The virtual earnings call featured key members of UCO Bank's senior management team, including Mr. Ashwani Kumar (Managing Director & CEO), Mr. Rajendra Kumar Saboo (Executive Director), and Mr. Vijay N Kamble (Executive Director). The session was structured with opening remarks from the MD & CEO followed by an interactive Q&A session with analysts and investors.

Financial Performance Highlights

During the call, MD & CEO Ashwani Kumar presented comprehensive performance metrics for Q4 FY26. The bank demonstrated strong growth across key parameters, with business growth of 14.95% on a year-on-year basis. Credit growth reached 19.44% YoY, while deposits grew by 11.59% YoY.

Asset Quality Improvements

The bank showcased significant improvements in asset quality metrics. Gross NPA improved to 2.17%, representing a 52 basis points reduction over the previous year. Net NPA was brought down to 0.27%, marking a 23 basis points improvement. The Provision Coverage Ratio (PCR) improved to 97.79%, showing a 110 basis points enhancement over the previous year.

Digital Transformation and Technology Initiatives

A significant portion of the discussion focused on the bank's digital transformation journey under Project Parivartan. The management highlighted that 31 digital journeys have been completed, with total digital business across assets and liabilities crossing Rs.25,000 crore in the last year. Mobile banking users increased from 82 lakhs to 153 lakhs over three years, while active mobile users grew from 14 lakhs to 70 lakhs.

Key digital initiatives completed include:

• CBDC availability on iOS and Android platforms
• Performance Management Solution implementation
• WhatsApp banking with over 20 lakh customers onboarded
• Tab banking across all branches with over 10 lakh accounts opened
• New treasury solution (Murex) implementation

Future Guidance and Strategic Direction

The management provided guidance for the current financial year, maintaining conservative targets while expressing confidence in exceeding them based on historical performance. For FY27, the bank has set deposit growth guidance at 10-12%, credit growth at 12-14%, and improved RAM guidance to 62-65%.

Analyst Interactions and Key Discussions

The Q&A session featured detailed discussions with analysts including Ashok Ajmera from Ajcon Global and other participants. Key topics covered included the bank's approach to maintaining growth momentum, digital banking initiatives for younger customers, portfolio composition, and risk management strategies. The management addressed concerns about potential geopolitical impacts and emphasized the bank's robust provisioning buffers totaling approximately Rs.1,900 crore.

The earnings call transcript has been made available on the bank's website and submitted to stock exchanges as part of the bank's commitment to transparency and regulatory compliance.

UCO Bank announced its audited financial results for the quarter and year ended 31 March 2026, reporting a net profit of ₹801.15 crore for Q4 FY26 and ₹2767.86 crore for the full fiscal year. The board meeting, held on 25 April 2026, approved the financial results and recommended a dividend of ₹0.44 per equity share for the financial year 2025-26, subject to shareholder approval at the upcoming Annual General Meeting. The bank also released an investor presentation detailing its performance metrics and future guidance.

Key Financial Performance

The bank's total income for the year ended 31 March 2026 stood at ₹29740.98 crore, compared to ₹29473.53 crore in the previous year. Interest earned for FY26 was ₹26281.35 crore, while other income was ₹3459.63 crore. Operating profit before provisions and contingencies increased to ₹6428.94 crore for the year, up from ₹6037.29 crore in FY25. Net interest income grew by 5.89% on year-over-year basis to ₹10197 crore for the year ended 31 March 2026 as against ₹9630 crore for the year ended 31 March 2025.

Quarterly Performance Highlights

For the quarter ended 31 March 2026, the bank reported strong performance with net profit of ₹801 crore compared to ₹653 crore in the same period of the previous year, registering a growth of 22.66% year-over-year. Net Interest Margin (NIM) Global stood at 3.00% and Domestic NIM at 3.19% for the quarter. The cost of funds improved by 31 basis points year-over-year to 4.47% for the quarter ended 31 March 2026.

Business Growth and Asset Quality

The bank's total business stood at ₹5,90,314 crore as on 31 March 2026, registering a growth of 14.95% on year-over-year basis. Gross advances grew by 19.44% year-over-year to ₹2,62,752 crore while total deposits grew by 11.59% year-over-year to ₹3,27,563 crore. The CASA ratio improved by 74 basis points to 38.65%, with total CASA standing at ₹1,17,752 crore, registering a growth of 12.46% year-over-year.

Asset quality showed significant improvement with Gross NPA declining to 2.17% as of 31 March 2026, down by 52 basis points year-over-year. Net NPA reduced by 23 basis points year-over-year to 0.27% as on 31 March 2026. The Provision Coverage Ratio stood at 97.79% as on 31 March 2026.

FY27 Guidance and Strategic Targets

The bank has set comprehensive guidance for FY27, targeting deposit growth of 10-12% and credit growth of 12-14%. The CASA ratio is expected to remain between 37-38%, while the RAM (Retail, Agriculture, MSME) portfolio is targeted at 62-65%. The Credit-to-Deposit ratio is projected to reach 80-82%, reflecting the bank's growth strategy. Credit cost is expected to remain below 0.75%, and Net Interest Margin (NIM) is targeted at 2.8-2.9%.

Capital Adequacy and Fundraising Plans

The Capital Adequacy Ratio under Basel-III norms strengthened to 18.61% as of 31 March 2026, with Tier I Capital Ratio of 16.59%. The bank's net worth increased significantly during the year. The board approved an equity capital raising plan through the issue of 270 crore equity shares of face value ₹10 each, aggregating to ₹2700 crore at face value. The shares will be issued through various modes including Qualified Institutional Placement (QIP) and Follow-on Public Offering (FPO) in one or more tranches during FY27, subject to shareholder and regulatory approvals.