UCO Bank Q2 FY27 Results (NSE: UCOBANK)
Signal: Earnings grew
The read
Q2FY27 marks a cleaner earnings quarter after the prior quarter's one-time tax distortion: PAT rose 26.77% to ₹786 crore, operating profit rose 16.04% to ₹1,872 crore, NIM expanded 10bps to 3.00%, and gross and net NPA improved to 1.96% and 0.18%. The main forward trade-off is credit growth of 24.70% versus deposit growth of 14.36%, which lifted the credit-to-deposit ratio to 82.29% from 75.47%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| EBIT | ₹1,872 Cr | 16.04% | |
| Net profit | ₹786 Cr | 26.77% | |
| EBIT margin | 0 |
P&L walk
Standalone operating profit rose 16.04% YoY to ₹1,872 crore and PAT rose faster by 26.77% to ₹786 crore, supported by 13.96% NII growth, a 10bps NIM expansion to 3.00% and lower reported NPAs.
Key positives
- NII grew 13.96% YoY to ₹2,886 crore and global NIM improved 10bps YoY to 3.00%, indicating healthier core interest earnings.
- PAT grew 26.77% YoY to ₹786 crore, faster than operating profit growth of 16.04% to ₹1,872 crore.
- Gross NPA declined 60bps YoY to 1.96% and net NPA declined 25bps to 0.18%, while PCR stood at 98.36%.
- RAM advances grew 26.92% YoY to ₹1,68,736 crore, led by retail growth of 30.23%, agriculture growth of 29.59% and MSME growth of 20.32%.
- Cost-to-income improved 240bps YoY to 50.39%, while fee-based income grew 34.66% YoY to ₹558 crore.
Key concerns
- Gross advances grew 24.70% YoY versus deposit growth of 14.36%, raising the credit-to-deposit ratio to 82.29% from 75.47% and increasing the need for sustained deposit mobilisation.
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