UCO Bank Q1 Net Rises 41% on higher interest and other income

Mumbai: UCO Bank reported a 40.7% year-on-year (YoY) rise in standalone net profit at Rs 612.4 crore for the quarter ended June 30, 2025, driven by higher interest income and a sharp increase in other income, even as expenses and provisions also rose during the period.At the end of the quarter, the bank’s deposits grew 11.4% YoY to Rs 2.98 lakh crore while advances rose 14.3% to Rs 2.15 lakh crore. “The profit is because of the increase in interest and non-interest income, coupled with the containment of operating expense increase at 4%,” said Ashwani Kumar, MD & CEO, UCO Bank.Total income grew 11.5% to Rs 9,383.4 crore from Rs 8,415.9 crore a year ago. Interest earned rose 6.8% to Rs 6,436 crore, supported by a 13.4% jump in interest on advances and a 135.9% surge in income from balances with the RBI and interbank funds.

Other income rose 23.2% to Rs 2,947 crore.Expenses climbed 10.4% to Rs 8,387.6 crore, mainly on account of higher interest costs and staff expenses. Interest expended grew 10.5% to Rs 5,999.4 crore, while operating expenses were up 10.2% to Rs 2,388.2 crore. Of this, employee cost rose nearly 11% to Rs 1,767.8 crore.Provisions (excluding taxes) increased 20.6% to Rs 138.9 crore. However, tax expenses declined 9.3% to Rs 244.5 crore, helping lift the bank’s bottom line.

Pre-tax profit rose 21.6% to Rs 856.9 crore. The bank’s earnings per share (not annualised) improved to Rs 0.49 from Rs 0.36 a year earlier. Reserves increased 27.1% to Rs 1,938.6 crore.In a key development , UCO Bank said its sponsored regional rural bank, Paschim Banga Gramin Bank, had been merged with two other RRBs, Bangiya Gramin Vikash Bank and Uttar Banga Kshetriya Gramin Bank, to form West Bengal Gramin Bank. The new entity will be sponsored by Punjab National Bank. Following the merger, UCO Bank has received Rs 239 crore representing its equity investment in the erstwhile RRB, while the transfer of Tier II bonds worth Rs 7.2 crore is under process.