UCO Bank Posts Strong Q3 Performance with 15.7% Profit Growth
UCO Bank has announced robust financial results for the third quarter of the current fiscal year. The Kolkata-based public sector lender reported a significant increase in its net profit. The bank's net profit rose to Rs 739.5 crore for Q3 FY26. This marks a solid 15.7% growth compared to the same period last year. In the third quarter of the previous fiscal, UCO Bank had posted a net profit of Rs 638.8 crore.
Operating Profit Climbs and Provisions Decline
The bank's operating performance also showed positive trends. UCO Bank's operating profit grew by approximately 6% year-on-year. It reached Rs 1,680.2 crore for Q3 FY26. This is up from Rs 1,585.7 crore in Q3 FY25. Additionally, the bank managed to reduce its provisions. Provisions fell by 11% compared to the year-ago quarter. This reduction contributed to the overall profit improvement.
Net Interest Margin Details and Management Commentary
UCO Bank's domestic net interest margin (NIM) stood at 3.2% for the quarter ended December 31, 2025. This represents a slight decline of 11 basis points from 3.3% in the same period last year. However, the bank's management expressed confidence in exceeding their initial guidance.
Ashwani Kumar, the Managing Director and CEO of UCO Bank, provided insights on the NIM performance. He stated that the guidance for NIM this fiscal was set at 2.8% to 2.9%. This guidance considered the 125 basis points repo rate cut announced by the Reserve Bank of India. Kumar highlighted that the bank has already surpassed this guidance in the third quarter.
"Our achievement during the quarter shows we have exceeded the initial targets," Kumar said. "The global NIM for the third quarter was 3.08%. I believe that in the next quarter, we will maintain this range. Our overall NIM for the financial year will be better than the guidance we provided at the start."
Outlook and Future Expectations
The bank's performance indicates a resilient operational strategy amidst economic changes. The growth in net profit and operating profit, coupled with lower provisions, reflects effective management. UCO Bank's ability to surpass its NIM guidance suggests strong asset-liability management. Investors and stakeholders will watch the fourth quarter results closely. The bank aims to sustain its momentum in the coming months.
