UCO Bank Q4 Results: Net Profit Rises 24%, Board Approves Raising Of Rs 2,700 Crore
The board authorised the lender to raise capital of Rs 2,700 crore in one or more tranches in FY26.
UCO Bank has logged a 24% year-on-year jump in net profit to Rs 652 crore in the fourth quarter of the financial year 2024-25, according to an exchange filing on Monday.
In comparison, the public sector undertaking’s profit for the year-ago period stood at Rs 526 crore.
The lender's net interest income rose 23% to Rs 2,698 crore, as against Rs 2,187 crore in the same quarter last year.
The bank's board recommended a dividend of Rs 0.39 per equity share for the fiscal ended March 31, 2025. However, this is subject to the shareholders' approval at the annual general meeting.
The bank’s asset quality improved, with gross non-performing assets ratio declining to 2.69% as of March 31 from 2.91% in the preceding quarter. The net NPA ratio fell to 0.5% from 0.63% on a sequential basis.
The lender’s total business rose 14.12% year-on-year to Rs 5,13,527 crore as of March. This was on account of 17.72% growth in gross advances to Rs 2,19,985 crore and an 11.56% increase in total deposits to Rs 2,93,542 crore.
The retail, agriculture and MSME portfolio rose 25.74% on-year to Rs 1,22,613 crore, led by a 35.09% surge in retail advances, a 20.02% rise in agriculture advances, and an 18.55% growth in MSME lending.
For the full year ended March 31, 2025, UCO Bank’s consolidated net profit stood at Rs 2,468 crore compared to Rs 1,671 crore in the 2023-24 fiscal.
As of March 31, UCO Bank had 3,302 domestic branches, two overseas branches (Hong Kong and Singapore), and one representative office in Iran.
Government holding during the latest quarter was diluted to 90.95% from 95.39% as a result of capital infusion.
Fundraise Approved
The board has also authorised the lender to raise equity capital by way of issue of 270 crore equity shares of face value of Rs 10 aggregating to Rs 2,700 crore.
The bank may opt to raise the money via various modes like qualified institutional placement and follow-on public offer.
It may raise funds in one or more tranches at an appropriate time during the ongoing fiscal. However, it stressed that fund raise too is subject to the shareholders's approval, as well as other statutory or regulatory approvals.
Before the quarterly results and board nod for fundraise was announced, shares of UCO Bank closed 1.68% higher at Rs 30.90 apiece on the BSE, compared to a 1.27% advance in the benchmark Sensex.
(With PTI inputs)
