UCO Bank Q4 profit rises 24% to ₹665.7 crore, announces dividend

The bank’s total business rose 14.12% YoY to ₹5,13,527 crore as of March 31, 2025, with gross advances increasing 17.72% YoY to ₹2,19,985 crore and total deposits expanding 11.56% YoY to ₹2,93,542 crore. The operating profit for the quarter reached ₹1,699 crore, registering a 33.48% YoY rise from ₹1,273 crore in Q4 FY2023-24.

The state-owned lender’s bottomline stood at ₹526 crore in the corresponding quarter a year ago. The bank reported an improvement in asset quality, with both gross and net NPA ratios declining. As of March 31, 2025, gross NPA stood at 2.69%, down 77 basis points year-on-year, while net NPA reduced to 0.50%, marking a 39 basis points YoY decline. The Provision Coverage Ratio was 96.69%.

Additionally, the bank declared a dividend of ₹0.39 per equity share.

The lender’s total business rose 14.12% year-on-year to ₹5,13,527 crore as of March, driven by a 17.72% growth in gross advances to ₹2,19,985 crore and an 11.56% increase in total deposits to ₹2,93,542 crore.

For the full year ended March 31, 2025, UCO Bank’s consolidated net profit stood at ₹2,468 crore compared to ₹1,671 crore in the 2023-24 fiscal.

The retail, agriculture and MSME (RAM) portfolio grew 25.74% on-year to ₹1,22,613 crore, led by a 35.09% surge in retail advances, a 20.02% rise in agriculture advances, and an 18.55% growth in MSME lending.

As of March 31, UCO Bank had 3,302 domestic branches, two overseas branches (Hong Kong and Singapore), and one representative office in Iran. Government holding during the latest quarter was diluted to 90.95% from 95.39% due to capital infusion.

Bank plans to issue up to 270 crore fresh equity shares in the 2025-26 fiscal to bring down the government's stake to 75% in compliance with SEBI’s minimum public shareholding (MPS) norms, a top official said on Monday.

The move follows the lender's successful Qualified Institutional Placement (QIP) in the March quarter, during which it raised ₹2,000 crore, reducing the government’s shareholding to 90.95% from 95.39%. “We plan to issue up to 270 crore shares of ₹10 each to further dilute the government's holding to 75% in FY'26,” UCO Bank MD and CEO Ashwani Kumar told PTI.

Based on the current market price of around ₹31 per share, the total issue may be valued at around ₹8,000 crore.

In the recent QIP, the bank allotted shares to a diverse set of investors, enhancing its capital adequacy. UCO Bank, headquartered in Kolkata, has been focusing on improving its asset quality and boosting profitability over the last few years. The lender on Monday reported a nearly 24% year-on-year jump in consolidated net profit to ₹665.72 crore for the quarter ended March.

Kumar said the bank has not received any “retail delinquency pressure” and its net NPA in the segment remains at 0.7%. The RBI, in its Financial Stability Report in December, had raised concerns over the growing risks in the retail lending segment.

Ahead of the result announcement, shares of UCO Bank closed 1.81% higher at ₹31 apiece on the NSE.