UCO Bank reported a robust increase in business during the third quarter of fiscal 2026, with total business rising 13.29% to Rs 5.54 lakh crore compared with Rs 4.89 lakh crore a year earlier. The Kolkata‑headquartered public sector lender said its advances and deposits both registered healthy growth, signalling renewed lending momentum in the bank’s operations.
UCO Bank Q3 FY26 growth drives higher advances and deposits
The bank’s total advances climbed 16.27% year on year to Rs 2.43 lakh crore in the quarter ended December. Domestic advances contributed strongly, increasing 17.49% to Rs 2.15 lakh crore from Rs 1.83 lakh crore in the same period last year. The advance growth points to stronger credit demand in the domestic market and an expanding loan book for the lender.
On the liabilities side, UCO Bank’s total deposits rose 10.71% to Rs 3.10 lakh crore from Rs 2.80 lakh crore in the year‑ago quarter. Domestic deposits grew 10.19% to Rs 2.92 lakh crore, reflecting steady retail and corporate deposit mobilisation. The bank’s domestic CASA ratio, an indicator of low‑cost deposits, improved to 38.41% from 37.97% in the corresponding quarter of the previous fiscal.
UCO Bank also reported an improvement in its Credit‑Deposit ratio, which stood at 78.61% at the end of the December 2025 quarter, up from 74.45% a year earlier. A higher CD ratio generally signals that a greater share of deposits is being deployed as loans, which can lift interest income but requires careful asset quality management.
Analysts will view the quarter’s performance as constructive for the lender. The combination of rising advances and improving CASA suggests the bank is broadening its lending while maintaining access to relatively low‑cost funds. However, sustaining credit growth while preserving asset quality and controlling non‑performing assets will be the immediate challenge for management.
UCO Bank’s results align with a wider trend among several public sector banks in India where credit offtake has accelerated after a period of subdued demand. The uptick in domestic lending underlines gradual recovery in corporate and retail credit segments, supporting overall economic activity.
While the bank’s headline numbers are positive, market participants will watch quarterly disclosures for further details on margins, provisioning and asset quality metrics. These elements will determine how much of the lending expansion translates into sustained profitability. For now, the reported figures provide a clear signal that UCO Bank is on a growth trajectory as it enters the second half of fiscal 2026.
The bank filed the results with regulators and noted that the quarter under review covered the period ending December. Investors and depositors will be looking for the management’s commentary and the full financial statement to gauge the drivers behind the growth and the bank’s outlook for the coming quarters.
Key Takeaways:
- UCO Bank Q3 FY26 growth saw total business increase 13.29% to Rs 5.54 lakh crore year on year.
- Total advances rose 16.27% to Rs 2.43 lakh crore, with domestic advances up 17.49%.
- Deposits climbed 10.71% to Rs 3.10 lakh crore and domestic CASA improved to 38.41%.
- Credit‑Deposit ratio strengthened to 78.61%, indicating greater lending activity against deposits.
