State-run UCO Bank on Saturday reported a 15.76 per cent year-on-year increase in its net profit to ₹739.51 crore for the third quarter of the current financial year as its operating profit grew around 6 per cent y-o-y and provisions fell around 11 per cent y-o-y during the period.
The Kolkata-based bank had posted a net profit of ₹638.83 crore for the third quarter last fiscal.
The lender’s operating profit stood at ₹1680.24 crore for Q3FY26 as against ₹1,585.69 crore for Q3FY25. Net Interest Income (NII) for the quarter under review stood at ₹2,646.12 crore, registering a growth of 11.29 per cent y-o-y. During the period under review, non-interest income, however, saw a decline of 26.69 per cent y-o-y at ₹869.32 crore, according to a stock exchange filing.
Domestic Net Interest Margin (NIM) stood at 3.27 per cent for the quarter ended December 31, 2025, which was a 11 basis points decline from 3.38 per cent for the year-ago period.
“The guidance for NIM for this financial year was 2.8-2.9 per cent because of the 125 bps repo rate cut announced by RBI. But if you look at our achievement during this quarter, we have already surpassed the guidance. The global NIM for the third quarter was 3.08 per cent. I believe that in the next quarter also we will be in this range. So, our overall NIM will be better than whatever we had guided at the start of this financial year,” UCO Bank Managing Director and Chief Executive Officer Ashwani Kumar told a media conference after declaring the results.
During the third quarter, the lender’s credit and deposit growth stood at 16.74 per cent and 10.64 per cent, respectively. For this fiscal, guidance for credit growth is 12-14 per cent.
Provisions during Q3FY26 fell to ₹525.12 crore from ₹589.51 crore in the corresponding period of FY25. During the period under review, asset quality improved on the year-on-year basis. Gross non-performing assets (NPA) ratio fell 500 bps at 2.41 per cent, and net NPA ratio declined 27 bps at 0.36 per cent.
The government currently holds 90.95 per cent stake in the bank.
Published on January 17, 2026
