UCO Bank — Q4 FY26 earnings call
Summary generated by AI from the official transcript UCO Bank filed with BSE on 02 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
UCO Bank reported full-year FY26 business growth of 14.95% YoY, with gross advances up 19.44% and deposits up 11.59%, alongside improved asset quality with gross NPA at 2.17% and net NPA at 0.27%. Full-year net profit rose 13.21% YoY to Rs.2,768 crore, while Q4 net profit grew 22% YoY to Rs.801 crore. Management also detailed digital transformation initiatives under Project Parivartan and issued FY27 guidance across credit growth, CASA, NIM, and asset quality metrics.
Numbers mentioned
Business growth: 14.95% (FY26 YoY)
p. 3
“Our business grew by 14.95% on a YoY basis, and the gross advances grew by 19.44% on a YoY basis, and deposits grew by 11.59% on a YoY basis.”
Mr. Ashwani Kumar, page 3 of the filed PDF · View the filing
CASA ratio: 38.65% (FY26)
p. 3
“Our CASA ratio was maintained above 38; our guidance was 37 to 38, and CASA was 38.65, improved by 75 bps over last year.”
Mr. Ashwani Kumar, page 3 of the filed PDF · View the filing
Gross NPA: 2.17% (FY26)
p. 3
“Coming to asset quality, our gross NPA improved to 2.17%; there is a 52 bps reduction over last year.”
Mr. Ashwani Kumar, page 3 of the filed PDF · View the filing
Net NPA: 0.27% (FY26)
p. 3
“Net NPA brought down to 0.27%; there is a 23 bps reduction over last year.”
Mr. Ashwani Kumar, page 3 of the filed PDF · View the filing
Provision Coverage Ratio: 97.79% (FY26)
p. 3
“PCR improved to 97.79%, a 110 bps improvement over last year.”
Mr. Ashwani Kumar, page 3 of the filed PDF · View the filing
Operating profit: Rs.6,429 crore (FY26)
p. 3
“our operating profit for the full year was Rs.6,429 crore, that is a growth of 6.49%”
Mr. Ashwani Kumar, page 3 of the filed PDF · View the filing
Net profit: Rs.2,768 crore (FY26)
p. 3
“full-year profit was Rs. 2,768 crore, with a growth of 13.21% on a YoY basis”
Mr. Ashwani Kumar, page 3 of the filed PDF · View the filing
Net profit: Rs.801 crore (Q4 FY26)
p. 4
“Net profit for the quarter ended was Rs.801 crore, with a growth of 22% on a YoY basis.”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
NIM (global): 3.03% (FY26)
p. 4
“NIM global, we have given a guidance of 2.8 to 2.9%; actual NIM is 3.03% for global, and for domestic it is 3.23%.”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Fee-based income: Rs.516 crore (FY26)
p. 4
“Our fee-based income grew by 32% on a YoY basis to Rs.516 crore against 389 crore.”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Capital adequacy ratio: 18.61% (FY26)
p. 4
“Our capital adequacy ratio has improved to 18.61%, with Tier-1 capital of 16.59%.”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Cost-to-income ratio: 52.66% (FY26)
p. 4
“our cost-to-income ratio, which has improved by 581 bps over last year, is now 52.66%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Dividend: 4.40% (44 paisa per share) (FY26)
p. 4
“The Board has approved declaration of dividend at the rate of 4.40% i.e. 44 paisa per equity share, subject to approval of the shareholders in the ensuing Annual General Meeting, which works out to be a dividend payout of approximately 20%.”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
IT spend: Rs.899 crore (FY26)
p. 6
“in 2025–26, it is Rs.899 crore. So every year we are increasing the spend to bring more advanced technologies into the system.”
Mr. Ashwani Kumar, page 6 of the filed PDF · View the filing
ECL provision buffer: Rs.1038 crore (Q4 FY26)
p. 9
“ECL provision held as on this quarter is Rs.1038 crore, plus Rs.341 crore contingency provision is also made.”
Mr. Ashwani Kumar, page 9 of the filed PDF · View the filing
Total additional buffer provisions: Rs.1,900 crore (FY26)
p. 9
“all three put together today, we are holding around Rs.1,900 crore of additional provision as a buffer towards our ECL framework”
Mr. Ashwani Kumar, page 9 of the filed PDF · View the filing
ROA: 0.87% (FY26)
p. 15
“We have reached 0.87, and if you look at for last so many quarters, every quarter, there is an improvement in our ROA.”
Mr. Ashwani Kumar, page 15 of the filed PDF · View the filing
Total gold loan portfolio: Rs.18,000 crore (as on date)
p. 18
“put together, I think Rs.18,000 crores is our total gold loan portfolio as on date.”
Mr. Ashwani Kumar, page 18 of the filed PDF · View the filing
AFS reserves: -140 crore (March 2026)
p. 16
“AFS reserves, give me a second. It's -140 crore. (Negative) 140 crores.”
Mr. Ashwani Kumar, page 16 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Deposit growth — 10 to 12% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“Now, coming to the guidance for the current year, deposits we have kept the guidance in the same range, 10 to 12%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Credit growth — 12 to 14% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“credit 12 to 14%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
CASA percentage — 37 to 38% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“CASA again 37 to 38%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
RAM percentage — 62 to 65% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“RAM we have improved our guidance to 62 to 65%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
CD ratio — 80 to 82% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“CD ratio 80 to 82%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Credit cost — less than 0.75% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“credit cost less than 0.75%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
NIM global — 2.8 to 2.9% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“NIM global in the range of 2.8 to 2.9%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Gross NPA — less than 2% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“gross NPA less than 2%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Net NPA — less than 0.2% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“net NPA less than 0.2%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Slippage ratio — less than 1% · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“slippage ratio less than 1%”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
Recovery and upgradation — Rs.2,000 to 2,500 crore · FY27
stated firmly by Mr. Ashwani Kumar
p. 4
“recovery and upgradation in the range of Rs.2,000 to 2,500 crore”
Mr. Ashwani Kumar, page 4 of the filed PDF · View the filing
IT budget — more than Rs.1,000 crore · FY27
stated firmly by Mr. Ashwani Kumar
p. 6
“This year also, more than Rs.1,000 crore budget has been approved by the Board.”
Mr. Ashwani Kumar, page 6 of the filed PDF · View the filing
ROA — 0.95 to 1% · end of next financial year
stated as an aspiration by Mr. Ashwani Kumar
p. 15
“I believe that by end of next financial year, we should be nearing 0.95 to 1% ROA levels.”
Mr. Ashwani Kumar, page 15 of the filed PDF · View the filing
QIP
stated conditionally by Mr. Ashwani Kumar
p. 10
“We will be going to the AGM for approval. First, we will get the approval of the shareholders, and thereafter, at the right opportune time, when the market also supports, we will go for the QIP.”
Mr. Ashwani Kumar, page 10 of the filed PDF · View the filing
Treasury traction — current financial year
stated conditionally by Mr. Ashwani Kumar
p. 17
“I think there will be a good amount of Treasury traction in this financial year. Again, it is subject to the global stability in the environment.”
Mr. Ashwani Kumar, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said guidance has historically been conservative and consistently surpassed, and that SMA movement reflects a bucket-shift effect from February having fewer days, not underlying stress.
Answered by Mr. Ashwani Kumar
Asked by Ashok Ajmera: Whether the FY27 guidance was toned down due to geopolitical concerns and West Asia war impact, and whether stress is emerging in SMA numbers for MSME/small business.
p. 8
“So it is not that SMA 1 has jumped significantly; overall SMA remains the same, only bucket shifting is happening.”
Mr. Ashwani Kumar, page 8 of the filed PDF · View the filing
Management detailed multiple buffers including ECL provisions, contingency provisions, and COVID-era provisions totaling around Rs.1,900 crore.
Answered by Mr. Ashwani Kumar
Asked by Ashok Ajmera: Why provisions and employee costs appear to have gone down despite strong profits, and whether there is a buffer for unexpected impacts like ECL.
p. 9
“So, all three put together today, we are holding around Rs.1,900 crore of additional provision as a buffer towards our ECL framework, which may trigger at the time when we have to shift to that.”
Mr. Ashwani Kumar, page 9 of the filed PDF · View the filing
Management said there are no immediate plans this quarter; they will first seek shareholder approval at the AGM before proceeding at an opportune time.
Answered by Mr. Ashwani Kumar
Asked by Ashok Ajmera: Plans for the QIP given Board approval and current share price.
p. 10
“So, this quarter we do not have any plans.”
Mr. Ashwani Kumar, page 10 of the filed PDF · View the filing
Management cited a Rs.14,000 crore corporate pipeline with growth coming from renewables, data centers, smart metering and roads, while emphasizing pricing discipline.
Answered by Mr. Ashwani Kumar
Asked by Ashok Ajmera: Where is credit growth momentum coming from and what is the sanctioned pipeline.
p. 10
“See, we have around Rs.14,000 crore of pipeline in the Corporate segment currently, and we have certain sanctions already in place, but because of the pricing issue, we are not able to disburse.”
Mr. Ashwani Kumar, page 10 of the filed PDF · View the filing
Management said deposit growth is focused on retail franchise rather than bulk deposits and that AAA/AA mix responds to pricing opportunities.
Answered by Mr. Ashwani Kumar
Asked by Sumere Choksey: How sustainable is the healthy QoQ deposit growth, and what is the strategy on AAA vs AA-rated corporate lending yields.
p. 11
“Our focus while raising deposits is more on the Retail franchise than bulk deposits.”
Mr. Ashwani Kumar, page 11 of the filed PDF · View the filing
Management described the omnichannel initiative planned for the year and clarified that the 'other' Retail portfolio is mainly gold and staff loans.
Answered by Mr. Ashwani Kumar
Asked by Sumere Choksey: What digital initiatives are planned and what comprises the 'others' category within retail loans.
p. 13
“So gold loan portfolio out of that is around 5,400 crores. And the growth which we are seeing in the other portfolio is mainly coming from the gold loan portfolio.”
Mr. Ashwani Kumar, page 13 of the filed PDF · View the filing
Management pointed to growth in fee-based income and tighter control of controllable costs monitored against budgets.
Answered by Mr. Ashwani Kumar
Asked by Hriday Choksey: What initiatives drove the decline in cost-to-income ratio.
p. 14
“There are two components. One is to control the controllable cost; non controllable, you can't control.”
Mr. Ashwani Kumar, page 14 of the filed PDF · View the filing
Management said the increase was small and not indicative of a broader trend.
Answered by Mr. Ashwani Kumar
Asked by Hriday Choksey: Reason for a slight uptick in personal loan NPAs this quarter.
p. 15
“Against Rs.2,700 crores of book, our NPA is only Rs.39 crores. Yes, last quarter, it was Rs.31 crores, but this is 39 crores.”
Mr. Ashwani Kumar, page 15 of the filed PDF · View the filing
Management outlined focus areas including NIM improvement, CASA growth, and TWO recovery, expecting ROA to approach 0.95-1% by next year-end.
Answered by Mr. Ashwani Kumar
Asked by Hriday Choksey: What is the bank's roadmap to reach a 1% ROA.
p. 15
“To build on ROA, we need to improve our net interest margin. We need to continue to focus on our CASA growth also, and our NI improvement also.”
Mr. Ashwani Kumar, page 15 of the filed PDF · View the filing
Management said no major impact has been observed yet in slippages or SMA trends, with buffers in place for contingencies.
Answered by Mr. Ashwani Kumar
Asked: What is the impact of the West Asia war on the MSME portfolio and CGTMSE coverage.
p. 16
“Currently, if you look at our slippages, they are in tandem with the previous quarter from the MSME segment. There is no sharp surge in slippages, number one.”
Mr. Ashwani Kumar, page 16 of the filed PDF · View the filing
Management attributed the loss to MTM impact from firming yields on the AFS book, with the impact expected to reverse as yields softened, subject to global stability.
Answered by Mr. Ashwani Kumar
Asked by Ashok Ajmera: Why did Treasury operations show a loss this quarter versus profit in the segment-wise results, and outlook for Treasury going forward.
p. 17
“For the AFS book, Rs.135 crore of the negative impact of MTM was there.”
Mr. Ashwani Kumar, page 17 of the filed PDF · View the filing
Risks flagged
Potential geopolitical/West Asia war-related stress on small businesses and MSME borrowers
p. 16
“There can be some impact, but it's not going to be a very major impact in the next financial year.”
Mr. Ashwani Kumar, page 16 of the filed PDF · View the filing
Yield volatility impacting Treasury MTM losses on AFS and HFT books
p. 17
“As a result, there was MTM on the AFS book and HFT book also. And that has impacted not only our bank a little bit, but other banks also.”
Mr. Ashwani Kumar, page 17 of the filed PDF · View the filing
Pricing pressure limiting corporate credit disbursement despite sanctions
p. 10
“we have certain sanctions already in place, but because of the pricing issue, we are not able to disburse.”
Mr. Ashwani Kumar, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.