UCO Bank Reports 2.8% Rise in Net Profit for Q2

UCO Bank , a prominent public sector lender, has reported a solid financial performance for the second quarter, with improvements across key metrics.

Financial Highlights

The bank's Q2 financial results showcase steady growth:

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Interest Income	₹6,537.17 crore	₹6,078.36 crore	↑ 7.55%
Net Profit	₹620.00 crore	₹602.74 crore	↑ 2.86%
Gross NPA Ratio	2.56%	3.18%	↓ 62 bps
Net NPA Ratio	0.43%	0.73%	↓ 30 bps

Improved Asset Quality

UCO Bank has made significant strides in improving its asset quality. The gross non-performing assets (GNPA) ratio decreased to 2.56% from 3.18% in the same quarter last year, while the net non-performing assets (NNPA) ratio improved to 0.43% from 0.73% year-over-year.

Strong Capital Position

The bank maintains a robust capital position with its Common Equity Tier-1 (CET-1) ratio standing at 15.61% as of September 30, 2025, well above regulatory requirements.

Digital Banking Focus

In line with the industry trend towards digitalization, UCO Bank has been focusing on enhancing its digital banking services. The bank's financial results now include a separate sub-segment for digital banking under the retail banking operations, indicating its commitment to this growing area.

Outlook

With improved financial performance, UCO Bank appears well-positioned to capitalize on growing economic opportunities. However, the bank will need to continue its focus on asset quality management and digital transformation to maintain its growth trajectory in a competitive banking landscape.

Investors and stakeholders will be watching closely to see if UCO Bank can sustain this positive momentum in the coming quarters, especially given the evolving economic conditions and regulatory environment in the banking sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.62%	-0.13%	-8.87%	-10.71%	-30.83%	+146.77%

UCO Bank , a prominent public sector bank in India, has announced revisions to its benchmark interest rates, effective from October 10, 2025. The bank's Asset Liability Management Committee (ALCO) has implemented a mix of changes across various rate categories, potentially impacting borrowers and depositors alike.

MCLR Rates Adjustment

The Marginal Cost of Funds Based Lending Rate (MCLR), a key determinant for loan interest rates, has seen reductions across most tenors:

Tenor	Previous Rate	New Rate	Change
Overnight	8.05%	8.00%	-0.05%
One month	8.30%	8.25%	-0.05%
Three month	8.45%	8.45%	No change
Six month	8.70%	8.70%	No change
One year	8.90%	8.85%	-0.05%

The reduction in MCLR rates, particularly for overnight, one-month, and one-year tenors, could translate to lower interest rates for borrowers with MCLR-linked loans.

TBLR Rates Increase

In contrast to the MCLR reduction, the Treasury Bill Linked Rate (TBLR) has seen an increase across all tenors:

Tenor	Previous Rate	New Rate	Change
3-month	5.45%	5.50%	+0.05%
6-month	5.50%	5.60%	+0.10%
12-month	5.55%	5.60%	+0.05%

This increase in TBLR rates may affect the interest rates for loans linked to this benchmark.

G-Sec Linked Rates

The Government Securities (G-Sec) linked rates have experienced marginal decreases:

Rate Type	Previous Rate	New Rate	Change
UCO G-Sec Rate (1 year)	5.67%	5.64%	-0.03%
10-year G-Sec Rate YTM	6.78%	6.72%	-0.06%

Unchanged Rates

UCO Bank has maintained the following rates at their existing levels:

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 adjustments in benchmark rates reflect UCO Bank's response to the current economic environment and market conditions. Borrowers with loans linked to MCLR may benefit from potentially lower interest rates, while those with TBLR-linked loans might see a slight increase in their interest obligations.

It's important for UCO Bank customers to review their loan agreements and understand how these changes might affect their borrowing costs. For potential borrowers, these rate adjustments could influence their decision-making process when choosing between different loan products offered by the bank.