Q3 2026 UCO Bank Earnings Call Transcript
Key Points
- UCO Bank (BOM:532505) reported a strong business growth of 13.25% year-over-year, driven by a 10.64% increase in deposits and a 16.74% rise in advances.
- The bank's CASA ratio improved by 44 basis points to 38.41%, maintaining a consistent range of 37% to 38% over the past several quarters.
- Net profit for the quarter grew by 15.65% year-over-year, reaching INR739 crore, while net interest income increased by 11.27%.
- Asset quality showed improvement with gross NPA reduced to 2.41% from 2.91% and net NPA down to 0.36% from 0.63%.
- Digital transformation initiatives have been successful, with over 50% of fixed deposits and loans against FDs processed digitally, and mobile banking users increasing fourfold over two years.
- Despite strong credit growth, the corporate segment showed muted growth due to pricing issues, particularly with a reduction in PSU exposure.
- The bank's treasury income contribution has been declining, raising concerns about its impact on overall profitability.
- There is uncertainty regarding the full impact of the new labor code on employee costs, though it is expected to be insignificant.
- The bank's international book faces challenges in maintaining profitable margins due to competitive pricing pressures.
- A significant portion of the deposit book, around 75%, has been repriced, which may impact future net interest margins if interest rates change.
Good afternoon, everyone, and welcome to the UCO Bank Q3 FY26 earnings conference call. Today, from the management side, we have with us Mr. Ashwani Kumar, MD and CEO; Mr. Rajendra Kumar, Executive Director; and Mr. Vijay Kamble, Executive Director.
With this, I hand over the call to MD, sir, for his opening remarks, post which we'll have a Q&A session. Thank you, and over to you, sir.
Thank you. First of all, let me welcome all our analysts and investors to this post-December results con call. With me, I have our ED, Shri Saboo-ji, Shri Kamble-ji, our Corporate General Managers, CFO, CRO, CGM IT, CGM HR, all are available. First of all, let me -- I wish you all happy New Year. And now I'll just give you a small brief of the financial performance of the bank, though we have already uploaded the presentation. I believe that every one of you have gone through. But brief about the results of the bank, I would like to share with you all.
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