UCO Bank reported a solid 13.67% year-on-year increase in total business for the quarter ended June 30, 2025, reaching Rs. 5.24 lakh crore from Rs. 4.61 lakh crore in the prior year period. This growth was primarily driven by a 16.58% rise in total advances to Rs. 2.25 lakh crore and an 11.57% increase in deposits to Rs. 2.99 lakh crore. Domestic advances outperformed with nearly 20% growth, supported by a 9.80% rise in domestic deposits. While the CASA ratio dipped slightly, the credit-deposit ratio improved significantly, reflecting stronger lending efficiency and continued momentum in core banking operations.
Accelerated Business Growth and Lending Momentum
UCO Bank’s total business volume expanded to Rs. 5.24 lakh crore in Q1 FY26, marking a substantial 13.67% increase compared to Rs. 4.61 lakh crore in the same quarter of the previous fiscal year. The bank’s total advances surged 16.58% year-on-year, reaching Rs. 2.25 lakh crore. This robust credit growth underscores the bank’s ability to tap into growing credit demand across retail, corporate, and MSME segments, demonstrating a sound risk appetite amid evolving economic conditions.
Deposits followed suit, rising 11.57% to Rs. 2.99 lakh crore. This increase reflects the bank’s successful efforts in mobilizing stable funding sources to support its expanding credit book.
Domestic Operations Lead the Charge
Domestic advances saw an impressive near-20% growth, increasing to Rs. 2 lakh crore in Q1 FY26 from Rs. 1.67 lakh crore a year earlier. This strong performance signals vibrant credit demand in India’s key sectors, facilitated by the bank’s targeted outreach and competitive lending products.
Similarly, domestic deposits rose by 9.80%, reaching Rs. 2.80 lakh crore. This steady increase in core deposits indicates enhanced customer confidence and successful deposit mobilization strategies, vital for sustaining credit growth and margin stability.
Sequential Growth and Operational Stability
Compared to Q4 FY25, UCO Bank’s total business witnessed a 1.95% rise from Rs. 5.14 lakh crore. Advances and deposits grew sequentially by 2.27% and 1.70%, respectively, reflecting ongoing business momentum despite macroeconomic uncertainties.
This quarter-on-quarter growth signals the bank’s operational resilience and consistent execution of its growth strategies.
Deposit Mix and Credit Utilization Trends
UCO Bank’s domestic CASA ratio edged down slightly to 36.90% in Q1 FY26 from 38.62% in Q1 FY25. While a marginal decline in low-cost deposits may modestly impact funding costs, the ratio remains healthy within industry standards.
Notably, the credit-deposit (CD) ratio improved to 75.48% from 72.07% in the year-ago period, indicating more efficient use of deposit resources to generate loans. A rising CD ratio typically reflects robust credit demand and disciplined deposit growth, which bode well for the bank’s net interest margin and profitability.
Strategic Outlook and Conclusion
UCO Bank’s Q1 FY26 performance paints a promising picture of sustained growth fueled by expanding domestic advances and stable deposit traction. The near 20% surge in domestic loans highlights the bank’s capacity to capitalize on India’s accelerating credit demand. The modest dip in CASA ratio suggests a need for continued focus on low-cost deposit mobilization, although the rising CD ratio and consistent sequential growth demonstrate operational discipline.
Moving forward, maintaining this momentum while optimizing the deposit mix and enhancing asset quality will be crucial for UCO Bank to solidify its position in the competitive banking landscape. The first-quarter results provide a robust foundation for the bank’s aspirations in FY26 and beyond.
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