1. Opening Hook
While half the PSU banking universe is still arguing whether growth should come first or margins, UCO Bank decided to do both—without calling a press conference about it. In a quarter where most banks blamed deposits, liquidity, geopolitics, and sometimes the weather, UCO just showed up with numbers that didn’t need excuses.
Credit growth ran ahead of guidance, NPAs continued their disappearing act, and NIM crossed 3% like it was always meant to. Management sounded calm, almost suspiciously calm, as if this wasn’t a one-quarter miracle but a system finally working.
If you think this is just another PSU bank riding the cycle, read on. The interesting bits are hidden in RAM growth, digital scale-up, and what they didn’t lend to. Things get spicy later.
2. At a Glance
- Business up 13.25% YoY – Growth without shouting about it.
- Advances up 16.74% – RAM segment clearly skipped leg day.
- Deposits up 10.64% – CASA held steady, no panic button pressed.
- NIM at 3.08% – PSU banks entering the “3% club” quietly.
- Net profit ₹739 cr (+15.65%) – Profits didn’t blink.
- Gross NPA at 2.41% – Asset quality behaving like a private bank.
- Net NPA at 0.36% – Almost academic now.
- PCR at 97.32% – Management sleeping peacefully.
3. Management’s Key Commentary
“Business grew by 13.25% YoY, backed by deposits and advances.”
(Translation: Growth came from the core, not treasury gymnastics.) 😏
“RAM segment grew 25.86%, retail 28%, MSME 23%.”
(Translation: Risk appetite exists, but underwriting finally has a spine.)
“CASA ratio maintained at 38% for 7–8 quarters.”
(Translation: Customers stayed even when rates tempted them away.)
“Net interest margin improved to 3.08%.”
(Translation: PSU bank margins are no longer a meme.)
“Gross NPA reduced to 2.41%, Net NPA to 0.36%.”
(Translation: Recovery teams deserve a bonus.)
“ECL provision now ₹1,252 crore; total need ~₹2,500–3,000 crore.”
(Translation: IFRS pain already half digested.)
“No exposure to SIDBI, NABARD, NAFID, or IBPC.”
(Translation: Low-yield charity lending exited the chat.) 😌
4. Numbers Decoded
| Metric | Q3 FY26 | What It Really Means |
|---|---|---|
| Credit Growth | 16.74% | Outgrowing guidance on purpose |
| CASA Ratio | 38.41% | Sticky deposits despite competition |
| NIM | 3.08% | Structural, not seasonal |
| Gross NPA | 2.41% | Cleanup almost complete |
| Net NPA | 0.36% | Risk now footnote-sized |
| PCR | 97.32% | Balance sheet wearing armor |
| ROA | 0.83% | PSU banks learning profitability |
