UCO Bank , a prominent public sector lender, has reported a 3% year-on-year growth in net profit for the quarter ended September 2025, demonstrating resilience in a challenging economic environment. The bank's financial results reveal significant improvements in asset quality and business growth, underlining its strategic focus on sustainable expansion.

Key Financial Highlights

Asset Quality Improvement

UCO Bank has made substantial progress in improving its asset quality:

The significant reduction in Non-Performing Assets (NPAs) reflects the bank's effective risk management strategies and recovery efforts.

Business Growth and Operational Efficiency

The bank reported robust growth across various business segments:

• RAM (Retail, Agriculture, MSME) portfolio grew by 22.87%, now comprising 65.23% of total advances.
• CASA (Current Account Savings Account) ratio maintained at 38.11%.
• Business per employee improved to ₹25.00 crores from ₹22.00 crores a year ago.
• Cost-to-income ratio improved to 52.79%, indicating enhanced operational efficiency.

Digital Transformation and Future Outlook

UCO Bank is actively pursuing digital transformation through its 'Project Parivartan':

• 27 digital journeys across various product lines have been digitized.
• Mobile banking users increased to 57 lakh, with the app maintaining a 4.8 rating on Google Play Store.
• WhatsApp banking user base expanded to 15 lakh, offering 46 services in five languages.

The bank plans to open 150 new branches by March, focusing on enhancing customer experience and expanding its reach.

Management Commentary

Mr. Ashwani Kumar, MD & CEO of UCO Bank, stated, "UCO Bank is performing well, with consistent improvements across various parameters on a quarter-on-quarter basis. We are seeing proportionate growth across all segments, improvements in deposit growth, and sustained enhancements in asset quality."

Capital Adequacy and Future Prospects

With a strong capital adequacy ratio of 17.89% and Tier 1 capital of 15.90%, UCO Bank is well-positioned for future growth. The bank is exploring opportunities in green financing, having already sanctioned around ₹3,000.00 crores in the past two years.

As UCO Bank continues to focus on digital innovation, asset quality improvement, and balanced growth across segments, it appears well-equipped to navigate the evolving banking landscape and capitalize on emerging opportunities in the Indian financial sector.

UCO Bank , a prominent public sector lender, has announced ambitious expansion plans alongside its second-quarter financial results, signaling a strategic move to enhance its market presence and financial performance.

Expansion Strategy

UCO Bank has revealed plans to significantly expand its branch network over the next five months. The bank's board has approved the addition of 150 new branches, which will increase its total branch count from 3,322 to 3,472 by March. This expansion initiative underscores the bank's commitment to growing its business presence and reaching a wider customer base.

Q2 Financial Performance

The bank has reported a modest growth in its financial metrics for the second quarter:

Improved Asset Quality

UCO Bank has made significant strides in improving its asset quality:

The substantial reduction in both gross and net non-performing assets (NPAs) indicates the bank's effective management of credit risk and improved loan recovery processes.

Human Resource Initiatives

As part of its growth strategy, UCO Bank plans to enhance its workforce:

• The bank aims to hire more skilled workers, particularly in IT, digital, and cyber security areas.
• There are plans to improve branch ambience, likely to enhance customer experience.
• Currently, UCO Bank employs 21,266 staff members.
• Notably, 70% of the bank's workforce is below the age of 40 years, suggesting a relatively young and potentially dynamic team.

These expansion plans and financial results reflect UCO Bank's efforts to strengthen its market position and operational efficiency in a competitive banking landscape. The focus on branch expansion, coupled with improvements in asset quality and strategic hiring, may position the bank for potential growth in the coming quarters.