UCO Bank’s FY25 Performance Shows Strong Growth: Net Profit Jumps 48%, NPAs Improve Sharply
UCO Bank posts 48% rise in FY25 net profit to ₹2,445 crore, with gross NPA improving to 2.69% and strong business growth.
Author: Neha Bodke
Published: May 8, 2025
UCO Bank has delivered a steady and resilient financial performance for the fiscal year 2024–25, with notable improvements in profitability, asset quality, and credit expansion. The bank reported a 22.1% year-on-year (YoY) increase in net profit, clocking ₹2,445 crore for FY25, compared to ₹2,174 crore in the previous fiscal year.
For the January–March 2025 quarter (Q4FY25), net profit stood at ₹653 crore, broadly stable compared to ₹581 crore in Q4FY24, reflecting steady operational margins and controlled credit costs.
This performance underscores UCO Bank’s successful pivot toward better-quality lending, robust risk management, and an intensified focus on digital transformation and financial inclusion.
Strong Growth in Core Operations
Total business of the bank, combining advances and deposits, crossed a significant milestone of ₹5 lakh crore, ending FY25 at ₹5,13,527 crore. This represents a 10.4% growth YoY, driven by double-digit credit growth.
Gross Advances grew by 14.2% YoY to ₹2,19,985 crore from ₹1,76,301 crore, indicating rising demand for credit across segments.
Global Deposits stood at ₹3,06,174 crore, marking a 7.9% YoY increase from ₹2,83,772 crore in FY24.
The Credit-Deposit (CD) ratio improved to 65.77%, up from 62.15% in the prior fiscal, reflecting stronger deployment of funds.
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Profitability Remains Stable
Despite margin pressures in the broader sector, UCO Bank’s operating profit for FY25 grew moderately to ₹6,827 crore from ₹6,642 crore in FY24. In Q4FY25 alone, operating profit stood at ₹1,563 crore.
The Net Interest Income (NII), a key metric of core earnings, came in at ₹9,193 crore for the year, with a quarterly NII of ₹2,255 crore. The Net Interest Margin (NIM), on a domestic basis, was 2.91% for Q4FY25, slightly lower than 3.06% a year ago, mirroring the industry-wide trend due to deposit cost pressures.
Non-interest income for FY25 stood at ₹2,857 crore, with ₹789 crore reported in Q4FY25, contributing to a diversified revenue stream.
Cost and Efficiency Indicators
Total expenditure during the quarter rose slightly to ₹3,481 crore, in line with business growth. The cost-to-income ratio for Q4FY25 was 63.3%, a slight uptick from 61.3% in the previous year.
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Robust Asset Quality Improvement
UCO Bank’s asset quality showed marked improvement—a crucial metric in the banking sector.
- Gross NPA ratio improved to 2.69% as of March 31, 2025, from 4.24% a year earlier.
- Net NPA declined sharply to 0.50%, down from 1.29% in Q4FY24.
- Provision Coverage Ratio (PCR) improved further to 93.76%, compared to 92.38% YoY.
Total provisions during the quarter stood at ₹981 crore, with the bank maintaining a strong buffer to absorb any potential stress.
Image: In FY25, UCO Bank’s gross NPA fell to 2.69% with PCR at 96.69%, net profit rose 48% YoY to ₹653 crore, and total business crossed ₹5.13 lakh crore—highlighting strong growth and asset quality.
Capital Strength and Liquidity
UCO Bank remains well-capitalized, with a Capital to Risk-Weighted Assets Ratio (CRAR) of 16.03%, significantly above regulatory requirements. The Common Equity Tier-1 (CET-1) ratio was at a healthy 12.26%.
This capital strength positions the bank well to support future credit growth and absorb unforeseen shocks.
Segment-Wise Credit Performance
While the bank did not provide detailed segmental break-ups in the public document, sources indicate that retail and MSME lending continued to be growth drivers. Agri and priority sector lending also remained focus areas, in line with government mandates and the bank’s historical strength in rural outreach.
Digital Banking and Tech Integration
UCO Bank emphasized ongoing investments in digital infrastructure and customer experience. The bank reported that 93.13% of total transactions in FY25 were through digital channels, highlighting the growing acceptance of mobile, internet, and ATM-based services among its customer base.
The bank has also ramped up its cybersecurity and risk control frameworks as part of its digital-first strategy.
Management Perspective
While formal management commentary was not disclosed in the document, the tone suggests confidence in sustaining growth momentum through prudent lending, expanding digital services, and maintaining tight control over costs and asset quality.
UCO Bank is also actively contributing to the government’s broader objectives of financial inclusion, MSME support, and credit access for underserved segments.
Outlook
Looking ahead to FY26, UCO Bank appears poised to build upon this foundation. Key focus areas will likely include:
- Accelerating credit growth, particularly in retail and MSME sectors
- Improving CASA ratio, which declined marginally to 38.4% from 40.3% YoY
- Enhancing profitability through margin optimization and cost control
- Further digitization to boost efficiency and customer reach
In a challenging global and domestic environment, UCO Bank’s FY25 performance positions it as a resilient public sector player ready to grow responsibly.
[Read more: https://www.ucobank.com/documents/d/guest/auditedfr202425]
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