UCO Bank reported a 27% increase in net profit for Q3FY25, driven by higher interest income and improved asset quality. The bank also saw significant growth in its total business and advances.
UCO Bank, one of India’s leading public sector banks, has announced its results for the third quarter of FY25, reporting a strong 27% rise in net profit to ₹639 crore. The bank’s robust performance was driven by higher interest income and improved asset quality.
The bank’s Net Interest Income (NII) increased by 19.6% year-on-year (YoY) to ₹2,377 crore, compared to ₹1,988 crore in the same quarter last year. Its Net Interest Margin (NIM) improved to 3.17% from 2.84% YoY, contributing significantly to its earnings.
The bank’s Pre-Provisions Operating Profit (PPOP) also saw a substantial increase, rising by 41.7% to ₹1,585.69 crore, up from ₹1,119.14 crore in the previous year.
Improved Asset Quality
UCO Bank’s asset quality showed notable improvement in Q3FY25. The Gross Non-Performing Assets (GNPA) declined by 3.37%, totaling ₹6,081.55 crore, down from ₹6,293.86 crore in the previous quarter. As a percentage of total advances, GNPA decreased to 2.91% from 3.18% QoQ. The bank’s Net NPA also improved, declining by 8.76% to ₹1,283.13 crore, with the Net NPA ratio dropping to 0.63% from 0.73% in the prior quarter.
The Provision Coverage Ratio stood at a strong 96.16%, indicating prudent provisioning by the bank.
Strong Business Growth
UCO Bank’s total business grew by 12.28% YoY, reaching ₹4,88,911 crore as of 31 December 2024. The bank’s total deposits grew by 9.36% to ₹280,256 crore, while its gross advances increased by 16.44% to ₹208,655 crore.
Retail advances saw impressive growth, up 31.01% YoY, driven by a 19.35% rise in home loans and a remarkable 51.93% increase in vehicle loans. Agricultural advances grew by 20.04%, while MSME sector advances rose by 12.75%.
UCO Bank’s Capital Adequacy Ratio (CRAR) remained strong at 16.25%, with Tier I Capital Ratio at 14.17%, as of December 2024.
As of 2:30 PM on 21 January 2025, UCO Bank shares were trading 0.18% lower at ₹44.46 on the Bombay Stock Exchange (BSE).
About UCO Bank:
UCO Bank, headquartered in Kolkata, India, is a leading public sector bank offering a range of financial services including personal, commercial, and corporate banking. The bank has a vast network of branches and ATMs across India, with a focus on providing accessible banking solutions to its customers.
