UCO Bank's Q4 net profit jumps 23% YoY to ₹801cr
What's the story
State-owned UCO Bank has reported a massive 23% jump in its net profit for the fourth quarter (Q4) of FY26. The bank's net profit stood at ₹801 crore, compared to ₹653 crore in the same period last year. The growth was largely driven by lower provisions, despite a dip in operating profit due to weaker core and non-interest income.
Financial performance
Operating profit declines
Despite the significant increase in net profit, UCO Bank's operating profit fell to ₹1,573 crore from ₹1,699 crore a year ago. This was mainly due to a decline in both core and non-interest income. The bank's net interest margin had also slipped slightly to 3% from 3.08% three months ago.
Financial growth
Gross advances, total deposits rise
UCO Bank saw a healthy growth in its gross advances and total deposits. The bank's gross advances grew by 19.44% year-on-year to ₹2.63 lakh crore, while total deposits rose by 11.59% to ₹3.28 lakh crore during the period under review.
Board decisions
UCO Bank proposes dividend
UCO Bank's board has proposed a dividend of ₹0.44 per equity share for FY26. The board also approved a plan to raise ₹2,700 crore by issuing shares during the fiscal year. Additionally, it approved raising up to ₹5,000 crore through the issuance of BASEL III Additional Tier I Bonds/Tier II Bonds/Long term Infra bonds in one or more tranches during FY27.