Stories
UCO Bank expects FY27 loan growth to beat guidance while holding asset quality targets
- •UCO Bank reported a 24.7 percent year-on-year growth in advances for the July-September quarter, outperforming its initial annual guidance of 12% to 14%.
- •The bank has successfully achieved its FY27 asset quality targets ahead of schedule, with gross NPA dropping to 1.96% and net NPA at 0.18%.
- •Credit growth remained broad-based, with retail and agriculture advances surging over 30% each, MSME rising above 20%, and corporate loans up over 24%.
- •The gold loan portfolio stands at approximately ₹22,000 crore, making up 7% to 8% of total advances with about two-thirds coming from agricultural loans.
- •Management remains confident about maintaining stable asset quality and conservative loan-to-value ratios despite recent fluctuations in gold prices.
Key Questions Answered
UCO Bank maintains its advance growth guidance at 12% to 14% for the 2026-27 financial year, though it expects to surpass this target given its current momentum. The bank reported a strong 24.7% year-on-year growth in advances during the July-September 2026 quarter, following a 21.18% credit growth in the first quarter.
UCO Bank has already achieved its FY27 asset quality goals ahead of schedule by the end of the first half of the financial year. As of September 30, 2026, the gross non-performing assets (GNPA) ratio stood at 1.96% and the net NPA ratio was at 0.18%, with the bank aiming to keep GNPA below 2% and net NPA below 0.20% for the remainder of the year.
UCO Bank's gold loan portfolio stands at approximately ₹22,000 crore, making up around 7% to 8% of the total advances. The portfolio mix is primarily tilted towards the agricultural sector, which accounts for about two-thirds of the book, while retail and other sectors comprise the remaining one-third.
