Kolkata: UCO Bank reported a year-on-year growth of around 24% in its net profit to ₹652.4 crore for the fourth quarter of the last financial year. This was supported by an over 30% year-on-year increase in its operating profit during the period. The Kolkata-based bank had registered a net profit of ₹525.7 crore for the fourth quarter of the financial year 2023–24.
The bank's board has approved raising around ₹2,700 crore in capital at face value through various modes such as Qualified Institutional Placement (QIP) and Follow-on Public Offering (FPO) during this financial year, with the aim of bringing down the government's stake from the current 90.9% to below 75%.
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"The bank's growth in advances and its focus on containing the cost of funds contributed to the profit growth. We worked on improving our yield on advances alongside the growth in advances. We also concentrated on containing the cost of deposits by avoiding excessive reliance on bulk deposits," UCO Bank MD and CEO Ashwani Kumar said.
During the fourth quarter of the last financial year, the bank's gross advances rose by 17.7% year-on-year, while total deposits increased by 11.5%. Kumar stated that the bank's target for growth in advances is around 12–14% for this financial year, while deposit growth is expected to be around 10–12%. Its guidance for global Net Interest Margin (NIM) is 3–3.1% for FY26.