UCO Bank, a public-sector bank with 91% state ownership, enters its Q2 FY 2026-2027 print with provisional business momentum well ahead of its own guidance — advances up 24.68% YoY and deposits up 14.05% YoY. The results will speak to whether global NIM holds above the 2.8-2.9% guidance band after three floating-rate benchmark revisions, and how cost-to-income normalises from Q1's recovery-boosted 37.49%.
| Results date | October 15, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue (interest income) | Rs. 6,996 crore |
| Previous quarter PAT | Rs. 656 crore |
| Previous quarter NII | Rs. 2,808 crore |
| Market cap | Rs. 28,991.46 Cr |
| CMP | Rs. 23.12 |
The Board was scheduled to consider unaudited, reviewed Q2/H1 FY27 results on 2026-10-15. The insider trading window had been closed from 2026-10-01 until 48 hours after results declaration.
A virtual Webex call was scheduled for 3:30 PM on 2026-10-15, hosted by Antique Stock Broking, with Rajendra Kumar Saboo and Vijay N. Kamble representing management.
The quarter's central question is whether UCO Bank upgrades its FY27 credit-growth guidance of 12-14%, after provisional Q2 advances of Rs. 2.88 lakh crore grew 24.68% YoY — a pace management had already called conservative in Q1 when growth was 21.18%. Deposit growth of 14.05% provisionally also exceeds the 10-12% guidance band, with the CD ratio at 82.37% against a guided 80-82%. On margins, Q1 global NIM of 3.05% ran above the 2.8-2.9% FY27 guidance, helped by cost of funds moderating to 4.36% after deposit repricing; three ALCO revisions during the Q2 window raised TBLR and G-Sec-linked benchmark rates while MCLR stayed unchanged, which management's framework suggests supports yield on advances. Cost-to-income is the swing item: Q1's 37.49% was flattered by Rs. 1,018 crore of technical write-off recoveries, of which about Rs. 800 crore came from a few accounts and was not expected to recur, and management guided to around or below 50% for FY27. Asset quality remains the guided destination not yet reached — Gross NPA at 2.08% versus a below-2.00% target and Net NPA at 0.25% versus below 0.20% — though the trajectory improved, with GNPA down 55 bps YoY in Q1. Management also flagged a plan to provision the remaining 40% of its preliminary estimated ECL requirement over the next four to five quarters, with the June 2027 deadline in view, and the continuous UFBU strike from 2026-10-26 remains an operational item for the call.
Q2 provisional business update vs audited results: The provisional print was subject to review by Statutory Central Auditors.
FY27 guidance scorecard tracking
Cost-to-income normalisation and TWO recovery comparability
NIM and funding-cost trajectory after ALCO revisions
ECL provisioning and operational continuity
Operating profit rose 79.84% YoY to Rs. 2,810 crore while net profit rose 8.05% YoY to Rs. 656 crore. Management attributed the gap in part to a one-time deferred-tax-asset charge of Rs. 1,237.13 crore arising from the Section 115BAA tax-regime change.
Management had guided 12-14% credit growth for FY27 but called the target conservative, saying the bank aimed to grow faster than industry growth. It noted it might review the guidance after Q2 FY27, and provisional Q2 advances grew 24.68% YoY against a sanctioned-credit pipeline of Rs. 15,000 crore cited in the Q1 call.
Gross NPA fell to 2.08% in Q1 FY27, down 55 bps YoY, and Net NPA fell to 0.25%, down 20 bps YoY, with PCR at 97.85%. Both remain above the bank's FY27 targets of Gross NPA below 2.00% and Net NPA below 0.20%.
Q1 FY27 global NIM was 3.05%, above the FY27 guidance range of 2.8-2.9%, which management attributed to lower cost of funds at 4.36% with stable yield on advances. Management said it would try to maintain NIM around that level and potentially slightly above it.
The bank had created a buffer equal to 60% of its preliminary estimated ECL requirement by Q1 FY27 and planned to provision the remaining 40% over the next four to five quarters. The June 2027 deadline is in view after RBI issued the final Master Directions on Expected Credit Loss provisioning on April 27, 2026.