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UCO Bank Q2 Net Profit Rises 26.8% to ₹785.64 Crore on Strong Loan Growth

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UCOBANK₹23.56 −1.67%

UCO Bank (NSE:UCOBANK) recorded a 26.76% year-on-year increase in net profit for the second quarter of FY27, reaching ₹785.64 crore compared to ₹619.76 crore in the same period last year. The profit gain was supported by higher operating earnings and steady core income growth. Operating profit rose around 16% to ₹1872.36 crore, while net interest income grew 13.96% year-on-year to ₹2886 crore.

The lender's operational gains stemmed from expanding business volumes and improved loan portfolio health. Gross advances expanded 24.70% year-on-year during the quarter, while total deposits increased 14.36%. Managing deposit costs helped lift the global net interest margin to 3.00% from 2.90% a year earlier. Asset quality also strengthened, with gross non-performing assets dropping 60 basis points year-on-year to 1.96% as of September 30, 2026, and net non-performing assets falling to 0.18%.

Looking ahead, management aims to sustain credit growth at around 12% to 14% for the full fiscal year 2027. The bank has set its full-year target for net interest margin between 2.80% and 2.90%. Investors will be watching whether credit demand remains strong and whether asset quality metrics can hold at these improved levels.

Key points

  • UCO Bank reported a Q2 FY27 net profit of ₹785.64 crore, up 26.76% from ₹619.76 crore in Q2 FY26.
  • Net interest income expanded 13.96% year-on-year to ₹2886 crore, while operating profit reached ₹1872.36 crore.
  • Gross advances increased 24.70% YoY and total deposits grew 14.36% YoY during the quarter.
  • Gross NPA reduced by 60 basis points year-on-year to 1.96%, with net NPA coming down to 0.18%.
  • The bank targets credit growth of 12% to 14% and a net interest margin of 2.80% to 2.90% for FY27.

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Questions and answers

What was UCO Bank's net profit for Q2 FY27?

UCO Bank reported a net profit of ₹785.64 crore for Q2 FY27, representing a 26.76% year-on-year increase from ₹619.76 crore in Q2 FY26.

How did UCO Bank's asset quality change in Q2 FY27?

UCO Bank's gross non-performing assets decreased by 60 basis points year-on-year to 1.96% as of September 30, 2026, while net non-performing assets dropped 25 basis points to 0.18%.

What are UCO Bank's growth targets for FY27?

UCO Bank aims for credit growth between 12% and 14% for FY27, while guiding for a full-year net interest margin of 2.80% to 2.90%.