UCO Bank has reported robust growth for the first quarter of FY26, with total business rising 13.67% year-on-year to Rs. 5.24 lakh crore. This expansion was driven by a 16.58% jump in total advances and an 11.57% increase in deposits. Domestic operations contributed significantly, with domestic advances rising nearly 20% and domestic deposits nearing 10% growth. The bank also witnessed a sequential uptick in business, reflecting continued momentum. While the CASA ratio saw a minor decline, the credit-deposit (CD) ratio improved meaningfully. The performance underscores UCO Bank’s strengthening credit appetite and operational resilience in a competitive banking environment.
Business Performance Overview
UCO Bank’s total business reached Rs. 5.24 lakh crore in the quarter ended June 30, 2025, marking a strong 13.67% increase over Rs. 4.61 lakh crore recorded in the same period last year. The growth was evenly supported by both lending and deposit mobilization.
Total advances climbed to Rs. 2.25 lakh crore, a 16.58% jump year-on-year, indicating a significant rise in credit deployment. On the deposit side, the bank reported Rs. 2.99 lakh crore, an 11.57% increase compared to the previous year’s Rs. 2.68 lakh crore.
Domestic Operations Drive Growth
Domestic segments played a central role in the bank’s overall growth. Domestic advances rose by an impressive 19.76% year-on-year to Rs. 2 lakh crore in Q1 FY26, up from Rs. 1.67 lakh crore in Q1 FY25. This sharp increase reflects robust credit demand across key sectors and efficient lending operations.
Domestic deposits reached Rs. 2.80 lakh crore, reflecting a steady 9.80% growth compared to the Rs. 2.55 lakh crore reported in the same quarter of the previous year. These numbers underscore UCO Bank’s growing traction in the retail and corporate banking spaces within India.
Sequential Performance and Stability
On a quarter-over-quarter basis, the bank’s performance showed consistent momentum. Total business increased by 1.95% from Rs. 5.14 lakh crore in Q4 FY25. Advances rose 2.27%, while deposits grew by 1.70% over the previous quarter.
This incremental growth, even amid a high base, reflects both the bank’s operational consistency and its ability to maintain customer trust in a volatile macroeconomic environment.
CASA Ratio and Credit-Deposit Metrics
The domestic CASA (Current Account and Savings Account) ratio, which reflects the proportion of low-cost deposits in the total deposit base, stood at 36.90% in Q1 FY26, a marginal decline from 38.62% in the corresponding period last year. While the dip may raise short-term cost-of-funding concerns, it remains within a healthy range compared to industry benchmarks.
Meanwhile, the credit-deposit (CD) ratio showed positive traction, rising to 75.48% from 72.07% a year ago. This ratio improvement points to more efficient utilization of funds, signaling higher credit offtake relative to deposit accumulation.
Strategic Outlook
The first-quarter numbers suggest that UCO Bank is well-positioned to sustain its growth trajectory in FY26. The sharp rise in domestic credit signals strong demand from key economic segments such as retail, MSMEs, and agriculture. At the same time, the bank’s focus on maintaining deposit momentum suggests prudent asset-liability management.
The slight dip in CASA ratio warrants attention, particularly in an environment of rising interest rates. However, improved credit-deposit dynamics and growing business volumes indicate that the bank is effectively managing its cost-income equation.
Conclusion
UCO Bank's performance in Q1 FY26 demonstrates a promising start to the fiscal year. The significant year-on-year and sequential growth in both advances and deposits underscores the institution’s operational strength and strategic clarity. While some headwinds remain—particularly in terms of deposit mix—the bank’s overall fundamentals appear sound. With a reinforced focus on domestic expansion and customer-centric digital offerings, UCO Bank is poised to capitalize on emerging growth opportunities in the Indian banking landscape.
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