UCO Bank profit surges 27% to ₹786 crore in Q2 FY27

UCO Bank announced a 27 per cent year-on-year increase in net profit to ₹786 crore for the second quarter ended September 30, signalling improved operational performance for the public sector lender. The Kolkata-headquartered bank had reported net profit of ₹620 crore in the corresponding period of the previous fiscal year.

Total income for the quarter climbed to ₹8,170 crore compared to ₹7,421 crore a year earlier, while interest income—the bank's primary revenue driver—improved to ₹7,286 crore from ₹6,537 crore. Operating profit also strengthened to ₹1,872 crore against ₹1,613 crore in the same quarter last year, reflecting better cost management and business expansion.

The bank's asset quality metrics showed marked improvement during the period. Gross non-performing assets declined to 1.96 per cent of gross advances at end-September 2026 from 2.56 per cent a year ago, while net NPAs fell to 0.18 per cent from 0.43 per cent in the year-ago period. The significant reduction in stressed assets underscores the bank's strengthened credit discipline and collections efforts.

Provisioning against bad loans rose marginally to ₹444 crore during the quarter, reflecting the bank's conservative approach towards potential credit risks. The combination of profit growth, higher income, and improved asset quality metrics suggests UCO Bank is on a recovery trajectory amid efforts to strengthen its balance sheet and operational efficiency.