UCO Bank Q3FY25 Results: Net Profit Up 27% on Better Margins

UCO Bank reported a 27.04% year-on-year (Y-o-Y) increase in net profit, reaching ₹639 crore in Q3FY25, driven by better margins and higher non-interest income.

Higher Net Interest Income and Margins

Net Interest Income (NII), the difference between interest earned and spent, grew 19.62% Y-o-Y to ₹2,378 crore, compared to ₹1,988 crore in Q3FY24. The Net Interest Margin (NIM) improved to 3.17% in Q3FY25, up from 2.84% in the same period last year.

Rise in Non-Interest Income

Non-interest income, which includes fees and treasury revenue, increased to ₹1,185.9 crore in Q3FY25, up from ₹860.8 crore in Q3FY24.

Increase in NPA Provisions

Provisions for non-performing assets (NPAs) more than doubled Y-o-Y to ₹263.3 crore from ₹116.3 crore, mainly due to ageing provisions for older bad loans.

Improved Asset Quality

The gross NPA ratio declined to 2.91% in December 2024 from 3.85% in December 2023, while net NPAs dropped to 0.63% from 0.98%. The Provision Coverage Ratio (PCR) rose to 96.16% in December 2024, an improvement of 95 basis points from December 2023.

Growth in Advances and Deposits

The bank’s advances grew by 16.44% Y-o-Y to ₹2.08 trillion, with retail advances rising 31.01% Y-o-Y to ₹50,055 crore. Total deposits increased by 9.36% Y-o-Y to ₹2.80 trillion, with CASA deposits contributing 37.9%, up slightly from 37.6% a year ago.

Capital Adequacy and Fundraising Plans

UCO Bank’s capital adequacy ratio stood at 16.25%, with a CET-1 ratio of 13.81% as of December 2024. The bank plans to raise ₹2,000 crore in equity capital in Q4FY25 through a Qualified Institutional Placement (QIP). This move will reduce the Government of India’s stake from 95.39% to around 92%.

Outlook for Growth

The bank aims to achieve 12–14% Y-o-Y growth in advances and 8–10% growth in deposits by the end of FY25.

About UCO Bank

UCO Bank, previously known as United Commercial Bank, is a government-owned public sector bank based in Kolkata, India. It is a medium-sized bank and was ranked 1948 on the Forbes Global 2000 list in 2018 and 80th on the Fortune India 500 list in 2020.

UCO Bank share price is currently priced at ₹43.05, down by ₹1.04 (2.36%) as of 10:59 AM on January 22, 2025. The stock opened at ₹44.11, reached a high of ₹44.14, and a low of ₹42.63. The market capitalisation stands at ₹51.47K crore, with a P/E ratio of 23.56 and a dividend yield of 0.65%. The stock’s 52-week high is ₹70.65, and the 52-week low is ₹38.01.

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