Mumbai: UCO Bank has announced its financial results for the first quarter of FY26, reporting a steady and positive performance amidst a cautious macroeconomic environment. The bank’s net profit rose by 10% year-on-year (YoY) to ₹607 crore for the quarter ended June 30, 2025, compared to ₹551 crore during the same period last year.
The financial results were declared on Monday, showcasing consistent profitability and robust operational metrics. According to the official statement, this growth in earnings is attributed to a balanced strategy involving cost management, improved asset quality, and stable income generation.
Net Interest Income (NII) Grows 7% YoY
UCO Bank posted a nearly 7% YoY increase in Net Interest Income (NII), reaching ₹2,403 crore in Q1 FY26, up from ₹2,254 crore in Q1 FY25. NII, which is the difference between interest earned and interest expended, remains a key indicator of a bank’s core operational strength. The increase highlights the bank’s ability to maintain consistent margins and optimize lending strategies despite tight market liquidity.
Commenting on the performance, Bhavik Joshi, Business Head, INVasset PMS, stated:
“UCO Bank’s Q1 results for the fiscal year show a stable yet cautious performance. The bank reported a net profit of ₹610 crore, up from ₹551 crore year-on-year, indicating solid profitability despite ongoing market challenges. This growth in profit reflects efficient cost management and the resilience of the core business, even as the banking sector grapples with economic uncertainty.”
Improved Asset Quality
The bank demonstrated encouraging improvement on the asset quality front. The Gross Non-Performing Assets (GNPA) ratio declined to 2.63% in Q1 FY26, down from 2.69% in the previous quarter. This marks a positive trend in the bank’s efforts to manage and resolve stressed assets through proactive monitoring and recovery efforts.
Additionally, the Net Non-Performing Assets (NNPA) ratio improved to 0.45%, compared to 0.50% in the preceding quarter. This reduction in NPAs is a critical indicator of the bank’s strengthening financial stability and enhanced risk management mechanisms.
Summary of Q1 FY26 Key Financials
| Metric | Q1 FY26 | Q1 FY25 | YoY Change |
|---|---|---|---|
| Net Profit | ₹607 crore | ₹551 crore | +10% |
| Net Interest Income (NII) | ₹2,403 crore | ₹2,254 crore | +6.6% |
| Gross NPA (GNPA) | 2.63% | 2.69% (Q4 FY25) | Improved |
| Net NPA (NNPA) | 0.45% | 0.50% (Q4 FY25) | Improved |
Outlook
UCO Bank’s Q1 FY26 performance indicates a resilient start to the fiscal year, reflecting consistent profitability, efficient interest income management, and improving asset quality. As the banking sector continues to adapt to changing economic dynamics, UCO Bank’s emphasis on digital transformation, risk control, and strategic growth is likely to support its stability and expansion in the quarters ahead.
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