UCOBANK - UCO Bank
📢 Recent Corporate Announcements
UCO Bank has announced a revision in its benchmark lending rates following a review by its Asset Liability Management Committee (ALCO). While the Marginal Cost of Funds Based Lending Rate (MCLR) remains unchanged with the 1-year tenor at 8.75%, the bank has reduced its 3-month and 6-month Treasury Bill Linked Rates (TBLR) by 5 basis points each. Additionally, the 1-year UCO G-Sec rate has been cut by 21 basis points to 5.58%. Other key rates, including the Repo Linked Rate and Base Rate, remain steady at current levels.
- MCLR remains unchanged across all tenors, with the 1-year rate at 8.75% and overnight at 7.90%.
- 3-month and 6-month TBLR rates reduced by 5 bps to 5.30% and 5.50% respectively.
- UCO G-Sec Rate (1 year) saw a significant reduction of 21 bps, moving from 5.79% to 5.58%.
- 10-year G-Sec Rate YTM adjusted downwards from 6.89% to 6.83%.
- Repo Linked Rates (UCO Float at 8.05%) and Base Rate (9.60%) remain unchanged.
UCO Bank has announced the appointment of Mr. Rajesh Kumar Ailawadi as a Shareholder Director, effective from March 8, 2026. Mr. Ailawadi brings over 37 years of extensive experience from the Life Insurance Corporation of India (LIC), where he retired as Executive Director (Legal) in December 2025. His tenure on the board is scheduled to run until January 9, 2028. This appointment is expected to bolster the bank's board with significant expertise in legal, administrative, and organizational matters.
- Mr. Rajesh Kumar Ailawadi appointed as Shareholder Director effective March 8, 2026
- Appointee has over 37 years of experience at LIC across Marketing, Personnel, and Legal functions
- The term of the appointment is set to expire on January 9, 2028
- Mr. Ailawadi retired as Executive Director (Legal) from LIC on December 31, 2025
UCO Bank has announced that Mr. Rajesh Kumar Ailawadi has been deemed elected as a Shareholder Director effective March 8, 2026. Since only one valid nomination was received by the February 27, 2026 deadline, the candidate was declared 'Fit and Proper' by the Nomination and Remuneration Committee. He will serve a term until January 9, 2028. As a result, the voting for this specific agenda item at the Extraordinary General Meeting (EGM) scheduled for March 16, 2026, has been cancelled.
- Mr. Rajesh Kumar Ailawadi deemed elected as Shareholder Director effective March 8, 2026.
- The appointee's term is set to run until January 9, 2028.
- Only one nomination was received by the bank by the February 27, 2026 deadline.
- Voting for the director election at the March 16, 2026 EGM is cancelled as the candidate is unopposed.
- The EGM will still proceed as scheduled to transact other remaining agenda items.
The Reserve Bank of India (RBI) has imposed a monetary penalty of ₹38.60 lakh on UCO Bank for various regulatory lapses. The penalty follows the Statutory Inspection for Supervisory Evaluation (ISE 2025) which assessed the bank's financial position as of March 31, 2025. Non-compliance was noted in areas including the periodicity of interest payments on savings deposits, locker rent charges, and credit reporting for Self Help Group (SHG) members. The bank has categorized the financial impact as non-material and is strengthening internal processes to prevent recurrence.
- Monetary penalty of ₹38.60 lakh imposed by the Reserve Bank of India.
- Non-compliance identified in savings deposit interest payments and locker rent regulations.
- Lapses found in Credit Information Reporting specifically for Self Help Group (SHG) members.
- Penalty based on findings from the Statutory Inspection for Supervisory Evaluation (ISE 2025).
- Bank management confirms the financial impact of the penalty is non-material.
UCO Bank has scheduled an Extraordinary General Meeting (EGM) on March 16, 2026, to seek shareholder approval for key board appointments. The agenda includes electing one Shareholder Director to fill a vacancy until January 9, 2028, following the resignation of Ms. Rachana Khare. Additionally, the bank seeks to approve a three-year tenure extension for Executive Director Shri Rajendra Kumar Saboo, effective from November 20, 2025. Remote e-voting for these resolutions will be open from March 12 to March 15, 2026.
- Extraordinary General Meeting (EGM) scheduled for March 16, 2026, via Video Conferencing.
- Election of 1 Shareholder Director to fill the casual vacancy until January 9, 2028.
- Proposal to extend the tenure of Shri Rajendra Kumar Saboo, Executive Director, for 3 years.
- Cut-off date for voting eligibility is March 9, 2026, with e-voting starting March 12.
- The bank currently has public shareholding of less than 16%, limiting it to one Shareholder Director.
UCO Bank has informed the exchanges of a nationwide strike scheduled for Thursday, February 12, 2026. The strike has been called by major unions including AIBEA, BEFI, and AIBOA in support of a broader call by Central Trade Unions. While the bank is implementing measures to maintain operations, it has warned that branch and office functioning may be significantly affected. This is an industry-wide event typical of the public sector banking space and usually results in temporary operational delays.
- Strike scheduled for a single day on Thursday, February 12, 2026.
- Participation from three major unions: AIBEA, BEFI, and AIBOA.
- The strike is part of a larger movement initiated by Central Trade Unions.
- Bank warns of potential impact on branch and office functioning despite contingency plans.
- Notification issued in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
UCO Bank has announced a revision in its benchmark lending rates following a review by its Asset Liability Management Committee. While the Marginal Cost of Funds Based Lending Rate (MCLR) remains unchanged across all tenors, the bank has marginally increased its Treasury Bill Linked Lending Rates (TBLR) by 5 to 10 basis points. The 1-year UCO G-Sec rate has also been hiked by 20 basis points to 5.79%. These adjustments, effective from February 11, 2026, reflect minor upward shifts in market-linked borrowing costs while keeping core lending rates steady.
- MCLR remains unchanged across all tenors, with the 1-year rate staying at 8.75%
- TBLR for 12-month tenor increased by 10 basis points from 5.50% to 5.60%
- UCO G-Sec Rate (1 year) revised upwards by 20 basis points to 5.79%
- Repo Linked Rates (UCO Float at 8.05% and UCO Prime at 5.25%) remain unchanged
- 10-year G-Sec Rate (Annualized) adjusted from 6.78% to 6.89%
UCO Bank has initiated the process to elect one director from among its non-government shareholders to fill a vacancy that arose on December 25, 2025. An Extraordinary General Meeting (EGM) is scheduled for March 16, 2026, to conduct this election via video conferencing. The bank has fixed February 16, 2026, as the cut-off date to determine shareholder eligibility for nominating, contesting, and voting. This move is part of the bank's compliance with the Banking Companies Act to ensure diverse board representation.
- Election of one Shareholder Director to fill a vacancy created by a resignation on December 25, 2025
- Extraordinary General Meeting (EGM) scheduled for March 16, 2026, through VC/OAVM
- Cut-off date for shareholder eligibility (nomination and voting) is February 16, 2026
- Last date for submission of nominations is set for February 27, 2026
- Process conducted under Section 9(3)(i) of the Banking Companies Act 1970
UCO Bank has officially informed the stock exchanges regarding a change in its senior management personnel. Mr. Manish Kumar, who held the position of General Manager in the Credit Monitoring Department at the Head Office, has retired from the bank's services. The superannuation became effective at the close of business hours on January 31, 2026. This transition is part of the routine administrative cycle of the public sector bank.
- Mr. Manish Kumar, General Manager (Credit Monitoring), superannuated on January 31, 2026.
- The retirement was effective as of the close of business hours on the specified date.
- The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- The change pertains to the Head Office level management in Kolkata.
UCO Bank has informed the stock exchanges about a change in its senior management team following a routine retirement. Mr. Manish Kumar, who held the position of General Manager in the Credit Monitoring Department, retired from his services on January 31, 2026. This update was provided in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015. The transition is administrative in nature and occurred at the close of business hours on the specified date.
- Mr. Manish Kumar, General Manager (Credit Monitoring), superannuated on January 31, 2026.
- The retirement was effective from the close of business hours on the final day of January 2026.
- The disclosure was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
UCO Bank reported a strong Q3 FY26 performance with a 15.65% y-o-y increase in net profit to ₹739 crore and a 16.74% growth in advances. Asset quality showed marked improvement as Gross NPA fell to 2.41% and Net NPA reached a low of 0.36%, supported by a high Provision Coverage Ratio of 97.32%. The bank has proactively built an ECL provision buffer of ₹1,252 crore, covering nearly 50% of its estimated future requirements. Management maintains a conservative credit growth guidance of 12-14% despite current outperformance in the RAM segment.
- Net Profit grew 15.65% y-o-y to ₹739 crore; Operating Profit rose 6% to ₹1,680 crore.
- Advances grew 16.74% y-o-y, driven by a 25.86% surge in the RAM (Retail, Agri, MSME) segment.
- Asset quality improved with GNPA at 2.41% and NNPA at 0.36%, while PCR stands strong at 97.32%.
- Global NIM improved to 3.08% from 3.03% sequentially; Domestic NIM stood at 3.27%.
- Capital Adequacy Ratio remains robust at 17.43% (18.67% including 9-month profits).
UCO Bank has notified the exchanges regarding a strike notice served by the United Forum of Bank Unions (UFBU) and the All India Bank Officer’s Association (AIBOA). The strike is scheduled for January 27, 2026, and involves nine constituent unions representing a large section of the banking workforce. While the bank is taking measures to ensure branch operations continue, it has warned that services may be impacted if the strike proceeds. This is an industry-wide development rather than a bank-specific issue.
- Strike notice served by UFBU and AIBOA for January 27, 2026.
- Participation involves nine constituent unions and associations under the UFBU umbrella.
- Bank warns of potential impact on branch and office functioning during the strike period.
- Management is implementing contingency steps to maintain smooth banking operations.
UCO Bank has released the audio and video recording of its post-earnings conference call conducted on January 20, 2026. The recording is now available on the bank's official website for public access, ensuring transparency regarding management's discussion on the latest financial results. This disclosure follows the bank's reporting for the third quarter of the 2025-26 financial year. Investors can use this resource to understand the bank's strategic direction and operational performance directly from the leadership.
- Post-earnings call with analysts and institutional investors was successfully held on January 20, 2026.
- Audio and video recordings of the proceedings have been uploaded to the bank's investor relations portal.
- The disclosure is part of the regulatory compliance for the financial year 2025-26.
UCO Bank reported a solid performance for the quarter ended December 2025, with net profit growing 15.65% YoY to ₹739 crore. The bank's credit growth was robust at 16.74% YoY, significantly outperforming its guidance, driven by a 28.18% surge in retail advances. Asset quality showed marked improvement with Gross NPA falling to 2.41% and Net NPA dropping to 0.36%. The bank also exceeded its operational guidance for Net Interest Margin (NIM) and slippage ratios, reflecting strong management execution.
- Net Profit increased by 15.65% YoY to ₹739 crore, while Net Interest Income rose 11.27% to ₹2,646 crore.
- Asset quality improved with Gross NPA at 2.41% (down 50bps YoY) and Net NPA at 0.36% (down 27bps YoY).
- Retail advances grew by 28.18% YoY, fueled by a massive 73.52% growth in vehicle loans.
- Global NIM stood at 3.08%, exceeding the management's full-year guidance range of 2.8-2.9%.
- Total business reached ₹5,53,680 crore, marking a 13.25% YoY growth with a healthy PCR of 97.32%.
UCO Bank reported a steady performance for Q3 FY26, with net profit growing 15.65% YoY to ₹739 crore. The bank's total business reached ₹5.54 lakh crore, driven by a robust 16.74% growth in advances, particularly in the RAM (Retail, Agri, MSME) segment which grew by 25.86%. Asset quality showed significant improvement, with Gross NPA falling to 2.41% and Net NPA reaching a low of 0.36%. Net Interest Income (NII) also saw healthy growth of 11.27% YoY to ₹2,646 crore.
- Net Profit increased by 15.65% YoY to ₹739 crore for the quarter ended December 2025.
- Gross NPA improved to 2.41% (down 50 bps YoY) and Net NPA stood at 0.36% (down 27 bps YoY).
- Total Advances grew 16.74% YoY to ₹2,43,594 crore, led by a 28.18% surge in Retail loans.
- Provision Coverage Ratio (PCR) remains strong at 97.32%, up from 96.16% a year ago.
- Domestic CASA deposits grew 11.49% YoY to ₹1,12,083 crore, maintaining a CASA ratio of 38.41%.
Financial Performance
Revenue Growth by Segment
Total income reached INR 29,474 Cr in FY25. In Q2 FY26, Net Interest Income (NII) grew by 10.08% YoY, while fee-based income grew by over 10% QoQ. Credit growth was led by the RAM (Retail, Agri, MSME) segment which grew 22.87% YoY, specifically driven by a 72.87% surge in vehicle loans and 18.94% in housing loans. MSME and Agriculture segments grew by 23.8% and 17.28% respectively.
Geographic Revenue Split
Operations are highly concentrated in the Eastern and Northern parts of India, which account for approximately 56% of the total 3,305 branches. Additionally, 61% of branches are located in rural and semi-urban areas. The bank also maintains an international presence with 2 branches in Hong Kong and Singapore and 1 representative office in Iran.
Profitability Margins
Global Net Interest Margin (NIM) stood at 2.90% and Domestic NIM at 3.08% for Q2 FY26. Net Profit for Q2 FY26 was INR 620 Cr, representing a 3% YoY growth. Return on Average Assets (RoA) was 0.71% for FY25 and 0.67% (annualized) for Q1 FY26. Operating Profit for Q2 FY26 grew 12.64% YoY to INR 1,613 Cr.
EBITDA Margin
Not applicable for banking; however, Operating Profit grew 12.64% YoY to INR 1,613 Cr in Q2 FY26. This growth was achieved despite a reduction in treasury and non-interest income, indicating stronger core performance from NII and fee-based streams.
Capital Expenditure
UCO Bank raised equity capital of INR 2,000 Cr through a QIP in March 2025. The board and shareholders have approved further equity capital raising of up to INR 2,700 Cr (face value) for FY26 to support credit growth and maintain capital buffers.
Credit Rating & Borrowing
The bank maintains a 'Strong' liquidity profile with a Liquidity Coverage Ratio (LCR) of 126% as of June 30, 2025. Capital Adequacy Ratio (CRAR) was 18.39% as of June 30, 2025, with a Tier-1 ratio of 16.36%. Cost of deposits stood at 4.84% and cost of funds at 4.73% as of June 30, 2025.
Operational Drivers
Raw Materials
Not applicable for banking; the primary 'raw material' is the cost of deposits, which stood at 4.84% as of June 30, 2025. Low-cost CASA deposits represent 38.11% of total deposits.
Capacity Expansion
Current network includes 3,305 domestic branches, 2,575 ATMs, and 10,920 Business Correspondents (BCs). The bank is focusing on digital expansion, with digital business exceeding INR 10,500 Cr and digital account openings growing 236% YoY.
Raw Material Costs
Cost of funds was 4.73% as of June 30, 2025, compared to 4.78% in FY25. The bank expects profitability to improve as the cost of funds declines following anticipated rate cuts and phased deposit repricing.
Manufacturing Efficiency
Digital adoption is a key efficiency driver: digital advances grew 6x YoY, and digital renewals grew 48x YoY. The Credit-to-Deposit (CD) ratio improved to 75.47% from 71.77% YoY.
Logistics & Distribution
Distribution is managed through 3,305 branches and 10,920 BCs. Operating expenses are being rationalized to improve the cost-to-income profile.
Strategic Growth
Expected Growth Rate
12-14%
Growth Strategy
The bank targets a 12-14% credit growth by focusing on the RAM segment (Retail, Agri, MSME), which now constitutes 65.23% of total advances. Strategy includes co-lending with NBFCs (pool exposure of INR 10,700 Cr), expanding digital business (currently INR 10,500 Cr+), and leveraging international presence in Singapore/Hong Kong for M&A financing opportunities.
Products & Services
Housing loans, vehicle loans, MSME loans, agriculture infrastructure loans, savings accounts, current accounts, and digital banking services via the 'Parivartan' journey.
Brand Portfolio
UCO Bank, UCO Anugoonj (Hindi magazine).
New Products/Services
Introduction of offline CBDC (Central Bank Digital Currency) facility and enhanced co-lending models with NBFCs to gain better visibility on customer onboarding.
Market Expansion
Expansion beyond the Eastern and Northern regions is planned to reduce geographic concentration risk, alongside a focus on M&A financing through international branches.
Market Share & Ranking
UCO is classified as a moderately sized Public Sector Bank (PSB) with a total business of INR 5.24 lakh Cr as of June 30, 2025.
Strategic Alliances
Strategic focus on co-lending relationships with multiple NBFCs to expand the loan book with controlled risk.
External Factors
Industry Trends
The banking industry is seeing a shift toward digital adoption and granular RAM lending. UCO is positioning itself with 236% YoY growth in digital account openings and a 65.23% RAM portfolio share to align with these trends.
Competitive Landscape
Competes with larger PSBs and private banks; currently focused on reaching scale to become more competitive outside its core Eastern/Northern strongholds.
Competitive Moat
The bank's moat is derived from sovereign ownership (Government of India support) and a strong retail deposit base. This provides a stable, low-cost funding source and high systemic importance, which is sustainable given the bank's nationalized status.
Macro Economic Sensitivity
Highly sensitive to RBI interest rate cycles; rate cuts led to a decline in global NIM from 2.99% in March 2025 to 2.96% in June 2025 due to immediate lending rate adjustments.
Consumer Behavior
Increasing preference for digital banking; UCO responded with a 6x growth in digital advances and 48x growth in digital renewals.
Geopolitical Risks
Presence in Iran through a representative office and branches in Hong Kong/Singapore exposes the bank to international regulatory and geopolitical shifts.
Regulatory & Governance
Industry Regulations
Complies with RBI guidelines on capital adequacy (maintaining 18.39% CRAR vs regulatory minimum) and LCR (126% vs 100% minimum). Adheres to RBI guidelines for Security Receipts (SRs), deducting INR 275 Cr from capital as per norms.
Environmental Compliance
The bank has an ESG profile supported by board-level committees and initiatives for community development. Specific ESG compliance costs in INR were not disclosed.
Taxation Policy Impact
The bank has a Deferred Tax Asset (DTA) of INR 5,258 Cr. It expects to transition to the new tax regime in approximately two years (FY27-FY28) as provisioning requirements decrease and profits rise.
Legal Contingencies
The bank reported an NCLT recovery of INR 104 Cr in the recent quarter. Total Provision Coverage Ratio (PCR) remains high at 96.88% to cover potential legal and credit defaults.
Risk Analysis
Key Uncertainties
Asset quality in the agriculture segment remains a concern with a GNPA of 10.81%. The impact of further rate cuts on NIM sustainability is a key uncertainty.
Geographic Concentration Risk
56% of branches are concentrated in Eastern and Northern India, creating vulnerability to regional economic downturns.
Third Party Dependencies
Increasing reliance on NBFCs for co-lending growth (pool exposure of INR 10,700 Cr).
Technology Obsolescence Risk
The bank is mitigating this through its 'Parivartan' digital journey, achieving 6x growth in digital advances to stay relevant against fintech and private competitors.
Credit & Counterparty Risk
Gross NPA is 2.63% and Net NPA is 0.45% as of June 30, 2025. The slippage ratio is 1.18% (annualized). 83% of the portfolio is already provided for in terms of tangible PCR.