UCO Bank , a prominent Indian public sector bank, has announced significant changes to its benchmark interest rates, as decided by the bank's Asset Liability Management Committee (ALCO). The revisions, set to take effect from August 10, 2025, encompass various key rates including the Marginal Cost of Funds Based Lending Rate (MCLR) and other benchmark rates.

MCLR Rate Revisions

The MCLR, which serves as the internal benchmark for setting lending rates, has been updated across all tenors:

Other Benchmark Rate Changes

In addition to the MCLR revisions, UCO Bank has also adjusted several other benchmark rates:

It's worth noting that the TBLR (6 month) remains unchanged at 5.50%.

Unchanged Rates

The bank has maintained the following rates without any alterations:

• Repo Linked Rate – UCO Float: 8.30%
• Repo Linked Rate – UCO Prime: 5.50%
• Base Rate: 9.60%
• Benchmark Prime Lending Rate (BPLR): 14.25%

These rate adjustments reflect UCO Bank's response to the current financial landscape and are likely to impact both borrowers and depositors. Existing and potential customers of UCO Bank are advised to take note of these changes, as they may affect loan interest rates and other financial products linked to these benchmark rates.

The bank has officially communicated these changes to the National Stock Exchange of India Ltd. and BSE Limited, ensuring transparency in its operations and compliance with regulatory requirements.

UCO Bank , a prominent public sector lender, has reported a robust financial performance for the first quarter of the fiscal year, with significant improvements in profitability and asset quality.

Profit Growth and Financial Highlights

UCO Bank posted a net profit of ₹610.00 crore in Q1, representing a substantial 10.7% increase from ₹551.00 crore in the same period last year. This growth in profitability underscores the bank's resilience and effective management strategies in a challenging economic environment.

The bank's interest income, a key revenue driver, grew to ₹6,436.00 crore from ₹6,024.00 crore year-over-year, indicating a healthy expansion in its core banking operations.

Asset Quality Improvement

One of the most noteworthy aspects of UCO Bank's Q1 performance is the marked improvement in its asset quality:

• The gross non-performing assets (NPA) ratio declined to 2.63% from 2.69% in the previous quarter.
• The net NPA ratio decreased to 0.45% from 0.50% quarter-over-quarter.

These improvements reflect the bank's effective strategies in managing and reducing non-performing assets, which is crucial for long-term stability and growth.

Provision and Risk Management

While focusing on growth, UCO Bank has also strengthened its risk management practices. The bank increased its provisions for non-performing assets to ₹460.00 crore from ₹360.00 crore quarter-over-quarter. This proactive approach in provisioning demonstrates the bank's commitment to maintaining a robust balance sheet and preparing for potential future challenges.

Income Statement Analysis

Examining the bank's income statement data reveals some interesting trends:

The table highlights significant year-over-year growth across key financial metrics, with revenue increasing by 16.50% and net profit surging by 23.76%. The earnings per share (EPS) also saw a notable improvement, rising from ₹0.45 to ₹0.56.

Conclusion

UCO Bank's Q1 performance demonstrates a balanced approach to growth and risk management. The substantial increase in net profit, coupled with improvements in asset quality, positions the bank well for sustained growth. As the banking sector continues to navigate economic challenges, UCO Bank's strong results indicate its resilience and potential for further expansion in the coming quarters.