• Credit growth: Global advances grew 24.70%, with retail and agriculture each growing around 30%, MSME advances more than 20%, and corporate loans 24% plus. UCO Bank maintains its 12 to 14% full-year guidance but expects growth to exceed it in coming quarters.
• Deposit funding: Deposits grew 14% plus against guidance of 10 to 12%, while the CD ratio reached slightly more than 82%; the bank aims to maintain it at 80 to 82%. It is mobilizing deposits and considering borrowings and bond raising to support credit growth.
• Margin outlook: Global NIM was around 3%, above guidance of 2.80% to 2.90%. Management expects to maintain NIM above guidance, citing stable advance yields and only a very small increase in deposit costs.
• Asset quality and profit: Gross NPA was 1.96% and net NPA 0.18%; slippages were 0.85% in the September quarter, with full-year slippages expected below 1% and no specific sector stress identified. Operating profit grew around 16% year-on-year and net profit grew 26.7% year-on-year and around 20% sequentially; management expects the profit trajectory to continue.
• ECL readiness: The bank has provided around 75% of its estimated ECL transition requirement, including a special provision of around ₹570 crore in the September quarter, and expects to manage the remaining 25% over the next 3, 4 quarters. Capital adequacy was 18.85% and CET1 was 17.06%, which management said provide sufficient buffer for the transition.