Financial Services · NSE: UCOBANK
UCO Bank
Q2 FY27 earnings call · Guided by management
Call held 15 Oct 2026 · Read the filing on NSEFiling
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- ₹31,487Cr
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Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · standalone · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Interest earned | 7,286 | 6,537 | +11.5% | 6,996 | +4.1% |
| Net interest income | 2,886 | 2,533 | +14.0% | 2,808 | +2.8% |
| Operating profit | 1,872 | 1,613 | +16.1% | 2,810 | -33.4% |
| Net profit | 786 | 620 | +26.8% | 656 | +19.7% |
| EPS (₹) | 0.63 | 0.49 | +28.6% | 0.52 | +21.2% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
Board-approved guidance normally not changed during the year
Rajendra Kumar Saboo · Q&A · p. 15
Board-approved guidance normally not changed during the year
“Yes, you have rightly pointed out, Choksey ji, but you know that the guidance is approved by the Board in the beginning of the year and normally we continue”
Target to keep advances growth above guidance across all sectors
Rajendra Kumar Saboo · Q&A · p. 15
Target to keep advances growth above guidance across all sectors
“Our target is to keep our growth more than the guidance we have given already, and we will continue to maintain that and the growth will continue to come from all the sectors like Retail, Agri, MSME, and Corporate.”
Advances growth may not stay near 25%, but expected above guidance
Rajendra Kumar Saboo · Q&A · p. 16
Advances growth may not stay near 25%, but expected above guidance
“So, maybe not up to that level, 25% is very high growth but still, yes, we will be maintaining good growth and more than the guidance given.”
More figures from the call
“In the same way, our guidance for the net NPA ratio was to bring it down below 0.25% for the year, but in the half year itself we have brought it down to below 0.20%, that is 0.18%.”
“On our slippage ratio we had also given guidance to keep it below 1%, and for the quarter it is 0.85%.”
“For the full year also, we will be maintaining around 50%.”
“This is the normalised recovery only, around 300, and we will be trying to keep it going forward also.”
“NPA provisioning because, you see, that our Net NPA has come down to 0.18% now. That is within our guidance of 0.20%. So, we have done accelerated provisioning to achieve the guidance, and that is why our NPA provision has increased.”
“We have a branch network of 3,439 branches, and we have added 27 branches.”
In short
- 01Advances grew 24.70% year-on-year against FY27 guidance of 12-14%; the bank keeps the guidance unchanged.
- 02Deposits grew 14% plus against guidance of 10-12%; CASA ratio at 36.77%, slightly lower than June.
- 03Q2 net profit Rs 786 crore, up 26.77%; operating profit Rs 1,872 crore, up 16.04%.
- 04Gross NPA 1.96% and net NPA 0.18%, already inside year-end guidance of below 2% and below 0.25%.
- 05Global NIM 3% against guidance of 2.80-2.90%; management expects to sustain it with repo-linked loans repricing.
- 06Credit cost 0.65%, expected to stay below the 0.75% guidance for FY27; cost-to-income about 50% for the year.
- 07ECL transition need assessed around Rs 3,200 crore plus against Rs 2,500 crore of provisions already held.
- 08Written-off account recovery about Rs 300 crore a quarter expected to continue; Q1 had a Rs 785 crore one-off.
Segments
RAM: Retail advances up 30.23%, agriculture 29.59%, MSME 20.32%
Rajendra Kumar Saboo · p. 3
RAM: Retail advances up 30.23%, agriculture 29.59%, MSME 20.32%
“So, the Retail advances have grown by 30.23%, and Agriculture has grown by 29.59%, and MSME has grown by 20.32%.”
Corporate: About Rs 10,000 crore corporate sanction pipeline
Rajendra Kumar Saboo · Q&A · p. 10
Corporate: About Rs 10,000 crore corporate sanction pipeline
“As far as the sanction pipeline is concerned, we already have around 10,000 crore of sanction pipeline in corporate advances.”
Corporate: Corporate advances grew 24.15% year-on-year
Rajendra Kumar Saboo · Q&A · p. 10
Corporate: Corporate advances grew 24.15% year-on-year
“That's why we have grown by 24.15% year-on-year in corporate advances as well.”
MSME: More scope for growth in MSME
Rajendra Kumar Saboo · Q&A · p. 15
MSME: More scope for growth in MSME
“In MSME, yes, there is little more scope for growing.”
Housing loans: Housing loan growth 20% plus year-on-year
Rajendra Kumar Saboo · Q&A · p. 16
Housing loans: Housing loan growth 20% plus year-on-year
“And you see that housing loan growth has been 20% plus year-on-year this quarter. This is helped by volume as well as enhancement in value.”
Margins and costs
About 66% of advances linked to repo rate
Rajendra Kumar Saboo · p. 8
About 66% of advances linked to repo rate
“and we have around 66% of our advances portfolio linked with the repo rate, the external benchmark lending rate.”
Higher NII from repo hike expected to offset treasury losses
Rajendra Kumar Saboo · Q&A · p. 8
Higher NII from repo hike expected to offset treasury losses
“So, we will see an improvement in the yield as well as in net interest income with this repo hike. So, this will more or less compensate for the treasury losses, if you see any, going ahead.”
No immediate need seen to raise deposit rates
Rajendra Kumar Saboo · Q&A · p. 10
No immediate need seen to raise deposit rates
“But as of now we don't see that an immediate need is there for increasing the interest rate on deposits.”
Gold loans: Gold loan yield around 9%, slightly less
Rajendra Kumar Saboo · Q&A · p. 13
Gold loans: Gold loan yield around 9%, slightly less
“So, yield on gold loan portfolio otherwise is around 9%, slightly less than 9%.”
Operating expenses expected in the same range going forward
Rajendra Kumar Saboo · Q&A · p. 11
Operating expenses expected in the same range going forward
“Normal growth is there, depending upon the number of transaction volumes we are undertaking, so that will be in the same range going forward.”
Debt and working capital
CASA ratio at 36.77%, slightly lower than June quarter
Rajendra Kumar Saboo · p. 3
CASA ratio at 36.77%, slightly lower than June quarter
“Thereby, our CASA ratio has been maintained at 36.77%. This is slightly lower than the June quarter.”
Capital adequacy 18.85%, Tier 1 ratio 17.27%
Rajendra Kumar Saboo · p. 4
Capital adequacy 18.85%, Tier 1 ratio 17.27%
“Our capital adequacy ratio stands at 18.85%, with a Tier 1 ratio of 17.27%.”
Salary account tie-ups with Bihar and Rajasthan governments for CASA
Rajendra Kumar Saboo · p. 6
Salary account tie-ups with Bihar and Rajasthan governments for CASA
“For example, we have entered into an MOU with the Government of Bihar for their employees' salary accounts.”
Acquisitions and new business
Overseas: GIFT City IBU opened this quarter
Rajendra Kumar Saboo · p. 5
Overseas: GIFT City IBU opened this quarter
“and we have opened our GIFT City IBU also in this quarter only.”
One-offs
June quarter had a one-off recovery of about Rs 785 crore in one account
Rajendra Kumar Saboo · Q&A · p. 8
June quarter had a one-off recovery of about Rs 785 crore in one account
“Coming to the first question, on TWO recovery, I want to say that in the last quarter, the June quarter, yes, there was a one-off TWO recovery in one big account, which was around 785 crore.”
ECL-related provision of Rs 570 crore made in Q2
Rajendra Kumar Saboo · Q&A · p. 21
ECL-related provision of Rs 570 crore made in Q2
“And in this current quarter, our ECL related provision has been ₹570 crore.”
Risks
Treasury: Hardening yields put treasury profit under pressure
Rajendra Kumar Saboo · Q&A · p. 8
Treasury: Hardening yields put treasury profit under pressure
“But as of now the yields are hardened, so in a hardening yield scenario, we all know that the treasury profitability is under pressure.”
ECL transition need about Rs 3,200 crore plus; Rs 2,500 crore provision held
Rajendra Kumar Saboo · Q&A · p. 12
ECL transition need about Rs 3,200 crore plus; Rs 2,500 crore provision held
“So, against the requirement, assessed around 3,200 plus, we have already a provision of 2,500, out of which 530 crore is the provisioning kept for the COVID, so that we are continuing.”
More ECL provisions planned in coming quarters as profits permit
Rajendra Kumar Saboo · Q&A · p. 12
More ECL provisions planned in coming quarters as profits permit
“We will be providing maybe in the next few quarters also, as and when the profitability permits us.”
ECL estimate not materially changed from three months ago
Rajendra Kumar Saboo · Q&A · p. 13
ECL estimate not materially changed from three months ago
“I think it is not materially different, maybe slightly changed because of our increased Advances book and these small factors.”
Agriculture: Higher Q2 slippages due only to agriculture marking
Rajendra Kumar Saboo · Q&A · p. 9
Agriculture: Higher Q2 slippages due only to agriculture marking
“and the higher slippages are only due to the agriculture marking.”
Other
Q2 net profit Rs 786 crore, up 26.77% year-on-year
Rajendra Kumar Saboo · p. 3
Q2 net profit Rs 786 crore, up 26.77% year-on-year
“Net profit has grown to Rs.786 crore, a growth of 26.77% year-on-year”
Q2 operating profit Rs 1,872 crore, up 16.04%
Rajendra Kumar Saboo · p. 3
Q2 operating profit Rs 1,872 crore, up 16.04%
“So, our operating profit is Rs.1,872 crore for the quarter, with a growth of 16.04%.”
Global advances up 24.70% to Rs 2,87,690 crore
Rajendra Kumar Saboo · p. 3
Global advances up 24.70% to Rs 2,87,690 crore
“In this, the gross advances, the global advances of the bank, have grown by 24.70% year-on-year, reaching to Rs. 2,87,690 crore.”
Small written-off accounts to be recovered via SARFAESI and OTS
Rajendra Kumar Saboo · Q&A · p. 19
Small written-off accounts to be recovered via SARFAESI and OTS
“So, through these various measures, we will try to recover from the smaller size, ticket size, portfolio of TWO.”
Fee-based income up 34.66% to Rs 558 crore
Rajendra Kumar Saboo · p. 4
Fee-based income up 34.66% to Rs 558 crore
“And out of the non-interest income, our fee-based income has grown 34.66% to Rs.558 crore in the quarter.”
Sources
- Earnings call transcript, Q2 FY27 Filed 16 Oct 2026 · 23 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.