UCO Bank: From IMPS Scams to ROE Dreams (Can PSU Banks Ever Chill?)
1. At a Glance
UCO Bank is the classic PSU uncle—slowly upgrading from “pen-and-ledger banking” to “look we also have UPI.” With ~3,200 branches, deposits of ₹2.68 lakh crore, and profits of ₹2,501 Cr in FY25, it looks healthy on paper. But then comes the twist: an ₹820 Cr IMPS fraud in 2024 made headlines faster than Bollywood divorces. Even after recovering 86% of it, the “UCO = Unko Credit Online” jokes won’t die down. Stock price? ₹28.9, down 44% YoY. Basically, PSU recovery story meets meme material.
2. Introduction
UCO Bank was founded during the Raj era (1943), but it still behaves like a government office in your local tehsil—lots of paperwork, tea breaks, and the occasional scam for spice. Once on the verge of irrelevance, the bank has pulled itself out of NPA hell (GNPA down from 7.9% in FY22 to 3.3% in FY25) and is now flashing a CRAR of 17.1%. For context, that’s like a student going from 33% to 60%—not a topper, but at least out of “fail list.”
Its revenue mix is decently spread: 35% corporate, 35% treasury, 29% retail. Loan book has grown to ~₹1.93 lakh crore, which is almost 50% higher than FY22. CASA share is ~39%, not great compared to SBI (45%+), but better than PSU laggards.
Still, market cap of ₹36,252 Cr with ROE at just 8.3% screams “middle-class PSU”—enough to survive, never enough to shine. Question: would you trust a bank with an overseas branch in Iran but digital apps that sometimes crash during salary credit?
3. Business Model – WTF Do They Even Do?
Like every PSU bank, UCO follows the holy trinity:
Corporate Lending (39%) – Give big loans, pray repayments arrive before auditors do.
Plus, Treasury operations (35%) are their safe zone—parking money into G-Secs and letting taxpayers indirectly fund the circus. Bancassurance is the side hustle—₹522 Cr premium collected in FY24 (up from ₹270 Cr in FY22).
Two overseas branches—Singapore and Hong Kong—and one Iran office make it “international.” But 91% of the action is still domestic.
