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UCO Bank's Q1FY27 net profit rose 8% to ₹656.3 crore, driven by 17% NII growth and lower provisions. Asset quality improved, with gross NPA at 2.08% and net NPA at 0.25%.
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State-run lender UCO Bank on Wednesday (July 22) reported an 8% year-on-year rise in net profit for the June quarter, supported by strong growth in net interest income (NII) and lower provisions, while continued improvement in asset quality also aided the lender's performance.
The bank posted a net profit of ₹656.3 crore for Q1FY27, compared with ₹607.4 crore in the corresponding quarter last year. Net interest income rose 17% year-on-year to ₹2,808 crore from ₹2,403 crore.
On the asset quality front, both gross and net non-performing asset (NPA) ratios improved on a quarter-on-quarter basis. Gross NPA stood at 2.08% at the end of the June quarter, compared with 2.17% in the March quarter, while net NPA declined to 0.25% from 0.27% over the same period.
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The bank also reported lower provisioning during the quarter. Provisions came in at ₹234.6 crore, down from ₹326.1 crore in the preceding quarter and ₹616 crore in the year-ago period, providing further support to profitability.
The quarter reflected steady operating performance, with higher core income and lower credit costs supporting earnings growth. The 17% rise in NII remained the key driver of the bank's financial performance, while the decline in provisions helped lift profitability.
At the same time, the sequential improvement in gross and net NPA ratios indicates that asset quality continued to strengthen, suggesting the bank sustained earnings growth even as stressed assets moderated.
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Shares of UCO Bank ended 1.15% lower at ₹26.55 apiece on the NSE on Wednesday.
