UCO Bank ↗

GoI continues to be the majority shareholder with 90.95% shareholding as on September 30, 2025, which reduced from 95.39% post the equity capital raise by the bank by way of qualified institutional placement (QIP) of equity shares in March 2025. GoI has been supporting public sector banks with regular capital infusions and steps to improve capitalisation, operational efficiency, and asset quality. From FY16 onwards, GoI has cumulatively infused equity capital aggregating to ₹22,645 crore, includ

The bank has seen improved capitalisation levels from FY23 due to improving internal accruals, unwinding discount from zero coupon bonds and reducing deferred tax assets. In the past, the bank’s capitalisation was supported by multiple equity infusions by the GoI against recapitalisation bonds. In the last five years, the bank’s capitalisation has been largely supported by internal accruals and equity capital raised from capital markets. The bank’s capitalisation levels have been supported by pe

The bank witnessed an increase in advances post coming out of the prompt corrective action (PCA) framework of RBI in September 2021. UCO’s gross advances increased by ~18% in FY25 which was higher than the industry growth. The bank’s advances is diversified with focus on growing the retail, agriculture and MSME (RAM) segments. The RAM segment advances together grew by 26% in FY25 led by 35% growth in retail advances compared to 13% growth in corporate advances. As on March 31, 2025,

Earnings profile for the bank has been improving in the last four years, with interest income driven by growth in advances and non-interest income driven by recovery from written -off accounts, treasury gains and fee -based income. The interest income increased by ~15% in FY25 due to growth in advances book and rise in yield on advances. While interest expenses grew by ~12% resulting in net interest income (NII) to grow by ~19%. The bank’s net interest margin (NIM) increased from 2.69% in

Asset quality parameters of UCO have seen improvement in the last four years (FY20 onwards)but remain moderate compared to its larger peers. The bank has seen significant write-offs, recoveries and upgrades and lower incremental slippages, resulting in improvement in asset quality parameters. UCO reported gross non-performing assets (GNPA)and net NPA (NNPA) ratio of 2.56% and 0.43%, respectively, as on September 30, 2025 (March 31, 2025: 2.69% and 0.50%), compared to GNPA and NNPA ratio of 3.46%

UCO’s resource profile has been moderate with relatively lower proportion of CASA deposits, compared to similar rated public sector banks. CASA deposits constituted 35.83% of total deposits as on March 31, 2025. The bank has taken steps to grow its CASA deposits; however, raising CASA deposits continues to remain challenging, given the higher interest rate differential between CASA deposits and term deposits, and multiple avenues available to depositors for deploying their funds.

UCO is one of the relatively smaller PSBs with a total business of ~₹5.36 lakh crore and an asset size of ₹3.69 lakh crore, with ~62% branches situated in North and Eastern India as on September 30, 2025.