UCO Bank conducted its Q3FY26 post-earnings analyst call on January 20, 2026, where Managing Director and CEO Ashwani Kumar, along with Executive Directors Rajendra Kumar Saboo and Vijay N Kamble, presented the bank's strong quarterly performance and outlined strategic initiatives.

Business Growth and Credit Performance

The bank demonstrated robust business expansion with overall business growth of 13.25% year-on-year, supported by balanced growth across deposits and advances. Credit growth reached 16.74%, significantly outpacing the deposit growth of 10.64%.

The credit expansion was primarily driven by the Retail, Agriculture, and MSME (RAM) segment, which grew by 25.86%. Within this segment, retail advances increased by 28.18%, agriculture by 24.69%, and MSME by 23.56%. The RAM segment now constitutes approximately 66% of the overall credit mix.

Profitability and Margin Improvement

UCO Bank's profitability metrics showed significant improvement across multiple parameters. Net profit for the quarter reached ₹739 crores, representing a growth of 15.65% year-on-year. Operating profit stood at ₹1,680 crores with a 6% year-on-year increase.

Net interest income grew by 11.27% year-on-year and 9.38% on a nine-month basis. The bank's cost of funds improved by 27 basis points to 4.48%, while yield on advances stood at 8.06%.

Asset Quality and Capital Position

Asset quality metrics demonstrated substantial improvement with gross NPA declining to 2.41% from 2.91% year-on-year, representing a 50 basis points reduction. Net NPA improved to 0.36% from 0.63%, showing a 27 basis points improvement.

The bank maintained strong capital adequacy at 17.43%, with Tier 1 capital at 15.41% and CET1 at 15.18%. Including nine months' profit, the capital adequacy ratio would reach 18.67%. The CD ratio improved to 78.56% in December 2025 from 65% in March 2023.

Digital Transformation and Strategic Initiatives

UCO Bank continued its digital transformation through Project Parivartan, implementing over 30 digital journeys across retail, agriculture, MSME, and liability segments. The bank has built a digital business book of ₹15,900 crores, serving over 2 lakh customers through straight-through processing.

Key digital achievements include:

• More than 50% of fixed deposits created digitally
• Over 61% of accounts opened through tab banking
• Mobile banking users increased four-fold to 64 lakhs
• WhatsApp banking serving 17 lakh customers in 10 languages
• Mobile app rating maintained at 4.8

The bank allocated an IT budget exceeding ₹1,000 crores, with approximately ₹700 crores already spent. Future initiatives include omni-channel experience, cash management services, supply chain finance, and robotic process automation.

Recovery and Provisions

Recovery performance remained strong with total recovery of ₹2,215 crores during the nine-month period, aligning with the guidance of ₹2,200 to ₹2,700 crores. Quarterly recovery reached ₹383 crores compared to ₹366 crores in the previous quarter.

The bank has built forward-looking provisions totaling ₹1,252 crores toward Expected Credit Loss (ECL) implementation, including ₹530 crores of COVID provisions made earlier. Management expects to build approximately 50% of the estimated ₹2,500 to ₹3,000 crores ECL requirement by the June 2027 implementation date.

UCO Bank has officially notified stock exchanges about a potential strike by bank unions scheduled for January 27, 2026. The notification, issued on January 25, 2026, was sent to both the National Stock Exchange of India Ltd. and BSE Limited in compliance with regulatory requirements.

Strike Details and Background

The United Forum of Bank Unions (UFBU), representing nine constituent unions and associations, along with the All India Bank Officer's Association (AIBOA), have served a strike notice for January 27, 2026. The strike call has been made in support of their various demands, as communicated through the Indian Banks' Association (IBA).

Bank's Preparatory Measures

UCO Bank has indicated that it is taking necessary steps to ensure smooth functioning of its branches and offices during the strike day. However, the bank has cautioned stakeholders that if the strike materializes, the normal functioning of branches and offices may be affected.

The notification was signed by Vikash Gupta, Company Secretary of UCO Bank, and was issued from the bank's head office in Kolkata. The communication demonstrates the bank's commitment to maintaining transparency with investors and regulatory compliance.

Regulatory Compliance

The bank has fulfilled its disclosure obligations under Regulation 30 of SEBI (LODR) Regulations, 2015, by informing both major stock exchanges about this potential operational disruption. UCO Bank trades on NSE under the symbol UCOBANK and on BSE with scrip code 532505.

This proactive communication allows investors and customers to prepare for potential service disruptions and reflects the bank's adherence to corporate governance standards in keeping stakeholders informed about material developments.