UCO Bank Revises Benchmark Rates: MCLR Remains Unchanged, TBLR and Repo Rates Adjusted

UCO Bank has announced a comprehensive revision of its benchmark rates following a detailed review by the bank's Asset Liability Management Committee (ALCO). The updated rates, which came into effect on December 11, 2025, reflect the bank's strategic approach to interest rate management in the current economic environment.

MCLR Rates Remain Stable

The bank's Marginal Cost of Funds Based Lending Rate (MCLR) structure shows minimal changes across different tenors. The overnight MCLR remains unchanged at 7.95%, while the one-month tenor continues at 8.20%. Similarly, the three-month and six-month MCLR rates are maintained at 8.70% and 8.85% respectively.

MCLR Tenor	Existing Rate	Revised Rate (w.e.f. 11.12.2025)
Overnight	7.95%	7.95%
1 Month	8.20%	8.20%
3 Month	8.70%	8.70%
6 Month	8.85%	8.85%
1 Year	9.60%	9.60%

Treasury Bill Linked Rates See Selective Adjustments

The Treasury Bill Linked Rate (TBLR) structure has witnessed targeted modifications. The 3-month TBLR has been reduced by 5 basis points from 5.45% to 5.40%, providing some relief to borrowers. However, both 6-month and 12-month TBLR rates remain steady at 5.55%.

TBLR Tenor	Existing Rate	Revised Rate (w.e.f. 11.12.2025)
3 Month	5.45%	5.40%
6 Month	5.55%	5.55%
12 Month	5.55%	5.55%

Government Securities and Repo-Linked Rates Adjusted

The bank has made notable adjustments to its government securities and repo-linked rates. The UCO G-Sec Rate for 1-year tenure has been reduced from 5.66% to 5.59%, reflecting a 7 basis point decrease. The 10-year G-Sec Rate (YTM% p.a. Annualized) has been set at 6.66%.

Significant changes have been implemented in repo-linked rates, with the Repo Linked Rate - UCO Float decreasing substantially from 8.30% to 8.05%, representing a 25 basis point reduction. The Repo Linked Rate - UCO Prime has also been lowered from 5.50% to 5.25%, marking another 25 basis point decrease.

Rate Type	Existing Rate	Revised Rate (w.e.f. 11.12.2025)
UCO G-Sec Rate (1 year)	5.66%	5.59%
10-year G-Sec Rate	-	6.66%
Repo Linked Rate - UCO Float	8.30%	8.05%
Repo Linked Rate - UCO Prime	5.50%	5.25%

Unchanged Benchmark Components

The bank has maintained stability in certain key benchmark rates. Both the Base Rate and Benchmark Prime Lending Rate (BPLR) remain unchanged, providing continuity for existing loan products linked to these rates. This selective approach demonstrates the bank's measured response to market conditions while maintaining competitive positioning.

The revised benchmark rates structure reflects UCO Bank's ongoing commitment to balancing competitive lending rates with prudent risk management practices. These adjustments will impact various loan products and deposit schemes offered by the bank to its customers across different segments.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.55%	+0.45%	-6.03%	-1.33%	-33.81%	+130.72%

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

Metric	Q2 FY26	YoY Change
Net Profit	₹620.00 crores	+3.00%
Operating Profit	₹1,613.00 crores	+12.64%
Net Interest Income	-	+10.08%
Credit Growth	-	+16.56%
Deposit Growth	-	+10.85%

Asset Quality Improvement

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

Metric	Q2 FY26	YoY Change
Gross NPA	2.56%	-62 bps
Net NPA	0.43%	-30 bps
Provision Coverage Ratio	96.99%	-

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.