UCO Bank Q2FY26 Update: Total Business Up 13% YoY, Advances Up 17%; Share Price in Focus

UCO Bank reported a strong performance in Q2 FY26, with a significant rise in both advances and deposits. The public sector lender showed healthy growth in total business and improved asset quality alongside better utilisation of deposits for lending.

UCO Bank Q2 FY26 Highlights

UCO Bank's total business grew 13.29% year-on-year to ₹5,37,000 crore. On a quarter-on-quarter basis, this represents a 2.48% increase. The growth was largely driven by a strong surge in advances, which rose 16.67% year-on-year to ₹2,31,000 crore.

UCO Bank Domestic Advances and Deposit Growth

Domestic advances posted a year-on-year growth of 17.24%, reaching ₹2,04,000 crore. On the deposit front, total deposits climbed to ₹3,06,000 crore, up 10.87% year-on-year and 2.34% from the previous quarter. Domestic deposits contributed ₹2,90,000 crore and rose 9.85% annually. The domestic CASA ratio stood at 38.11%, marginally lower than 38.24% a year ago.

Improved Credit-to-Deposit Ratio and Asset Quality

The bank's credit-to-deposit (CD) ratio improved to 75.56%, up from 71.77% in September 2024, indicating efficient deployment of funds. Asset quality also saw an improvement, with Gross NPA reducing to 2.63% from 2.69% in March 2025. Net NPA declined to 0.45% from 0.50% over the same period.

Read More: Nykaa Delivers Strong Q2 FY2026 Growth Led by Beauty and Fashion Segments!

Net Interest Income and Provisions

Net Interest Income (NII) for the quarter rose 7% year-on-year to ₹2,403 crore. Provisions decreased on a sequential basis, standing at ₹616 crore at the end of the quarter, compared to ₹663 crore in March 2025. This decline in provisions reflects better credit management and a healthier loan book.

UCO Bank Share Price Performance

On October 6, 2025, UCO Bank share price opened at ₹31.35 on NSE, above the previous close of ₹30.77. During the day, it surged to ₹32.02 and dipped to ₹31.02. The stock is trading at ₹31.11 as of 11:43 AM. The stock registered a moderate gain of 1.10%.

Over the past week, it has moved up by 2.03%, over the past month, it has moved up by 8.55%, and over the past 3 months, it has declined by 3.50%.

Conclusion

UCO Bank delivered a robust Q2 performance in FY26, with strong growth in advances and deposits. Improved asset quality and lower provisions further bolstered its financial stability. The rising CD ratio and consistent domestic business expansion highlight its improved operational efficiency.

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