UCO Bank reported Q2 FY27 numbers with revenue of Rs. 8,174.08 Cr (+10.14% YoY) and PAT growth of +26.77% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 15, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 8,174.08 Cr (+10.14% YoY) |
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| PAT (Q2) | Rs. 785.64 Cr (+26.77% YoY) |
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| EBITDA margin | 22.91% (+117 bps YoY) |
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| EPS (Q2) | Rs. 0.63 (+28.57% YoY) |
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| Market cap | Rs. 30,069.86 Cr |
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| CMP | Rs. 23.98 |
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Quarter Snapshot
UCO Bank exceeded its own FY27 guidance on credit growth (25.16% vs 12–14%), deposit growth (14.36% vs 10–12%) and credit cost (0.63% vs <0.75%), while GNPA (1.96%) and NNPA (0.18%) fell below targets for the first time. PAT grew 26.77% YoY to Rs.785.64 crore with operating margin up 117 bps YoY to 22.91%, though corporate and retail banking segment margins compressed YoY. ROA of 0.80% annualised remains below the 0.95–1% FY27 target, requiring H2 PAT of ~Rs.2,700–3,000 crore.
Key Investment Insights
Key Positives
- Advances grew 25.16% YoY to Rs.2,82,571 crore, exceeding the 12–14% FY27 guidance and ahead of industry credit growth of ~19%
- Deposits grew 14.36% YoY to Rs.3,49,590 crore, exceeding the 10–12% guidance; CD ratio at 80.83% within the guided 80–82% band
- GNPA fell to 1.96% (from 2.56% YoY) and NNPA to 0.18% (from 0.43%), below the <2.00% and <0.20% FY27 targets for the first time
- PAT grew 26.77% YoY to Rs.785.64 crore; normalised PAT of Rs.1,045.47 crore (excluding Rs.9.97 crore SR gain and Rs.267.19 crore DTA reversal) was +68.69% YoY
- Operating profit grew 16.06% YoY to Rs.1,872.36 crore with operating margin up 117 bps YoY to 22.91%; H1 operating profit +47.44% YoY
- NII grew 13.96% YoY, outpacing interest expended growth of 9.88%, reflecting net-spread expansion
- PCR improved to 98.36% (from 96.99% a year ago); credit cost of 0.63% within the <0.75% guidance
- CRAR at 18.85% (CET-1 17.06%); H1 CFO of Rs.3,732.70 crore vs −Rs.7,316.35 crore in H1 FY26 (CFO/PAT 2.59x)
Risk Factors
- Corporate Banking segment margin compressed to 5.23% from 10.78% YoY; segment results fell 43.86% YoY despite revenue growth of 15.74%
- Retail Banking segment results fell 17.54% YoY with margin declining to 7.33% from 10.34%
- Provisions rose 37.33% YoY to Rs.807.67 crore (up 244.26% QoQ), including Rs.118.10 crore provided for 28 fraud cases in Q2
- ROA of 0.80% annualised remains below the 0.95–1% FY27 target; meeting it requires H2 PAT of ~Rs.2,700–3,000 crore
- Audit Committee could not be constituted for want of quorum of Independent Directors; results placed before the Board under Clause 14A of the Nationalised Banks Scheme
- UFBU strike disruption: Sep 11 strike materialised and the Oct 26 continuous strike is a live Q3 risk