UCO Bank Q3 Results: Net profit rises 27% to ₹639 crore, NII up 19.6% YoY; asset quality improves

UCO Bank reported a net profit of ₹638.83 crore in the third quarter of FY25, registering a growth of 27% from ₹502.83 crore in the year-ago quarter, led by higher interest income.

The bank’s Net Interest Income (NII) in Q3FY25 increased 19.6% to ₹2,377 crore from ₹1,988 crore, year-on-year (YoY). Net Interest Margin (NIM) for the quarter ended stood at 3.17% as against 2.84% for the same period in the preceding year.

Pre-Provisions Operating Profit (PPOP) of UCO Bank during the quarter ended December 2024 rose 41.7% to ₹1,585.69 crore from ₹1,119.14 crore in the same quarter last fiscal year.

Asset Quality

Asset quality of the bank improved in the December quarter. Gross Non-Performing Assets (GNPA) in Q3FY25 decreased 3.37% to ₹6,081.55 crore from ₹6,293.86 crore in the September quarter. Gross NPA as a percentage of gross advances improved by 27 basis points (bps) to 2.91% from 3.18%, quarter-on-quarter (QoQ).

Net NPA in the December quarter declined 8.76% to ₹1,283.13 crore from ₹1,406.44 crore, sequentially. Net NPA ratio also dropped 10 bps to 0.63% from 0.73%, QoQ.

Provision Coverage Ratio stood at 96.16% as on 31 December, 2024.

UCO Bank Q3 Business Highlights

Total Business of UCO Bank stood at ₹4,88,911 crore as on 31 December 2024, showing an increase of 12.28% YoY. 

Total Deposits of the lender increased by 9.36% to ₹280,256 crore as in the December quarter from ₹256,261 crore, YoY. Gross Advances grew 16.44% to ₹208,655 crore as on from ₹179,195 crore, YoY.

The bank’s Retail Advances grew 31.01% YoY to ₹50,055 crorebacked by growth in Home loan and Vehicle loan portfolio which registered a growth of 19.35% and 51.93% respectively on YoY basis. 

Agriculture Advances rose 20.04% YoY to ₹28,033 crore, while Advances to MSME sector increased 12.75% YoY to ₹36,262 crore, UCO bank said.

Credit to Deposit Ratio of the bank was at 74.45%.

Capital Adequacy Ratio (CRAR) stood at 16.25% as of December 2024, with Tier I Capital Ratio of 14.17%.

At 2:30 PM, UCO Bank shares were trading 0.18% lower at ₹44.46 apiece on the BSE.