UCO Bank Share Price Dips Despite 10% Profit Growth in Q1FY26

Market Performance

Shares of UCO Bank slipped 0.96% in early trade on July 21, 2025, following the release of its financial results for the first quarter of FY26.

The stock was trading at ₹31.82 per share after the earnings were announced.

Main News

UCO Bank, a state-owned lender, posted a net profit of ₹607 crore for the quarter ending June 30, 2025.

This reflects a 10% year-on-year increase compared to the same period last year.

The performance was supported by a steady rise in core income and improved asset quality.

Company Details

• Net Interest Income (NII) for Q1FY26 stood at ₹2,403 crore, marking a 7% YoY growth.
• This growth in NII reflects better operational efficiency and steady lending performance.
• Gross Non-Performing Assets (Gross NPA) for the quarter came in at 2.63%, showing an improvement from 2.69% in the previous quarter.
• Net NPA also declined to 0.45%, compared to 0.50% in the March 2025 quarter.
• Provisions for the quarter stood at ₹616 crore, down from ₹663 crore in the previous quarter, indicating a reduction in potential credit risk.

Financial Performance Breakdown

Revenue (Net Interest Income)

• ₹2,403 crore in Q1FY26
• 7% YoY increase

Net Profit

• ₹607 crore for the June quarter
• 10% YoY growth

Asset Quality

• Gross NPA: 2.63% (vs. 2.69% in Q4FY25)
• Net NPA: 0.45% (vs. 0.50% in Q4FY25)

Provisions

• ₹616 crore in Q1FY26
• Decreased from ₹663 crore in Q4FY25

Summary of the Article

UCO Bank posted a solid financial performance in Q1FY26 with 10% growth in net profit and a 7% rise in NII.

The bank also improved its asset quality, with a reduction in both Gross and Net NPAs.

Additionally, provisions declined sequentially, reflecting a more stable risk profile.

Despite the positive financials, UCO Bank’s share price dipped 0.96%, indicating a mixed reaction from the market.