• Growth guidance review: First-quarter loan growth reached 21.18% (against full-year guidance of 12%–14%) and deposit growth hit 11.28% (within the 10%–12% range). The bank is maintaining guidance for now, but will conduct a mid-term review after Q2 with scope to revise targets upward.
• Foreign fund mobilization: UCO Bank aims to raise at least $500 million through FCNR(B) deposits and overseas foreign currency borrowings (OFCV) via its Singapore and Hong Kong branches. Management expects no adverse impact on net interest margins from this fundraising, aiming to meet or exceed its full-year NIM guidance of 2.8%–2.9%.
• Asset quality targets: The bank targets reducing its gross NPA ratio from 2.08% to below 2% and net NPA from 0.25% to below 0.20% by March. Annualized slippages stood at 0.63% (guided below 1%) and credit cost was 0.39% (guided at 0.75%).
• One-time tax provision: Higher provisions were driven by a transition to the new tax regime, which required remeasuring deferred tax assets (DTA) at approximately 25% instead of 35%. This led to a one-time DTA charge of ₹1,237 crore within the total tax provision of ₹1,919 crore, moderating net profit growth to 8%.