UCO Bank announces strong financial performance in Q3FY24 with significant business growth

In a remarkable display of financial resilience and strategic growth, UCO Bank has reported a solid financial performance for the quarter and nine months ended December 31, 2023. The bank’s total business witnessed a significant increase of 10.46% year-on-year, reaching Rs.435456 crore, underpinned by substantial growth in Gross Advances and Total Deposits.

Strategic Business Expansion and Sectoral Growth:

UCO Bank’s commitment to diversifying its portfolio and bolstering its presence in the Retail, Agriculture, and MSME (RAM) sectors has paid off, with the RAM segment growing by 17.70% year-on-year to Rs.93720 crore. This growth is attributed to an impressive 18.01% increase in Retail advances, a 13.22% rise in Agriculture advances, and a remarkable 20.79% growth in MSME advances. The bank’s strategic focus on these sectors has not only driven business growth but also contributed to the broader economic development.

Reduction in Non-Performing Assets (NPA):

One of the quarter’s highlights is the significant reduction in Gross NPA, which decreased by 178 basis points to 3.85%, and Net NPA, which fell by 68 basis points to 0.98%. This achievement underscores UCO Bank’s effective risk management and recovery strategies, enhancing its financial stability and investor confidence.

Strengthened Financial Ratios:

UCO Bank’s financial health is further evidenced by its strong Capital Adequacy Ratio (CRAR), which improved by 169 basis points to 16.01%. The Tier I Capital Ratio also saw a notable increase, improving by 196 basis points to 13.53% year-on-year. These improvements reflect the bank’s robust capital management practices and its commitment to maintaining a strong financial foundation.

Improved Profitability and Operational Efficiency:

The bank’s operational efficiency has seen considerable improvement, with Operating Profit for the nine months ended December 31, 2023, standing at Rs.3303 crore, a 10.69% increase year-on-year. The Return on Equity for the quarter also registered an 80 basis points improvement to 13.07%. Additionally, the Credit to Deposit Ratio saw an improvement of 781 basis points to 69.93% year-on-year, indicating a healthy balance between the bank’s lending and deposit mobilization activities.

Expanding Network and Accessibility:

UCO Bank’s commitment to expanding its reach and enhancing customer accessibility is evident from its extensive network of 3217 domestic branches, including overseas branches in Hong Kong and Singapore, and a representative office in Iran. With 61.77% of its branches located in rural and semi-urban areas, the bank is well-positioned to serve a diverse customer base. The bank also boasts 2475 ATMs and 9146 BC Points, totaling 14841 touch points as of December 31, 2023, ensuring widespread service availability.

The Indian lender’s financial results for Q3FY24 highlight the bank’s strategic growth initiatives, effective risk management, and strong operational performance. With significant advancements in key business segments and a focus on sustainability and profitability, UCO Bank is poised for continued success in the competitive banking sector. The bank’s reduction in NPA and improved financial ratios demonstrate its resilience and strategic planning, setting a positive trajectory for future growth.

This comprehensive performance analysis of UCO Bank for Q3FY24 showcases the bank’s strategic achievements and its pivotal role in driving financial inclusion and economic growth.