UCOBANK
Large CapUCO Bank
Financial Services
UCO Bank is an Indian public sector bank offering a range of financial products and services. It focuses on Retail, Agriculture, and MSME (RAM) lending, alongside corporate credit. The bank is undergoing significant digital transformation to enhance customer experience and business growth.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 15/100Rev -1% YoY · PAT +23% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,656 Cr | -1.3% | +0.1% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹801 Cr | +22.9% | +8.2% |
| PAT margin | 12.0% | +236 bps | +91 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
UCO Bank reports strong Q4 FY26 with 19.44% YoY gross advances growth and 22% YoY net profit increase, driven by RAM segment and improved asset quality. GNPA reduced to 2.17% and NNPA to 0.27%.
Management consistently surpasses its own conservative guidance, indicating strong execution across key metrics. Asset quality continues to improve, and digital initiatives are driving business growth. While corporate credit growth is constrained by pricing, RAM segment momentum is robust.
RAM Segment Growth
The RAM segment grew by over 24% YoY, with Retail at 26%+, Agriculture at 26%, and MSME at 19%.
Digital Transformation (Project Parivartan)
Total digital business across assets and liabilities crossed Rs.25,000 crore. Mobile banking users increased five times from 82 lakhs to 153 lakhs in 3 years.
Car Loan Portfolio
Car loan growth was around 71% YoY, indicating strong demand and successful digital processing.
Gold Loan Portfolio
The total gold loan portfolio is around Rs.18,000 crore (Retail Rs.5,400 cr, Agri Rs.12,200 cr), contributing to 'other' retail growth.
Branch Network Expansion
110 branches have been opened in the last financial year, increasing the total to 3,412 domestic branches.
Tab Banking Rollout
Tab banking has been implemented across all branches, facilitating over 10 lakh account openings in the last financial year.
Improved Corporate Pricing
Pricing has improved slightly in the corporate segment, allowing the bank to extend credit to AAA-rated and PSU accounts.
Digital Adoption
Active mobile users increased from 14 lakhs to 70 lakhs in 3 years, with the mobile app rating 4.7-4.8 on app stores.
Corporate Credit Pricing Pressure
Corporate credit growth is not pursued at the cost of margins, with Rs.14,000 crore pipeline facing pricing issues.
Treasury Yield Volatility
Treasury operations were negatively impacted by firming yields in the last quarter, resulting in MTM losses on the AFS book.
Geopolitical Impact on MSME
Concerns raised about the West Asia war's impact on MSME, though management currently sees no major impact and has built buffers.
Maintaining Credit Growth with Margins
The bank faces the challenge of sustaining high credit growth (19.44% YoY) without compromising on pricing, especially in the corporate segment.
Treasury Performance
Treasury performance is subject to global stability in the environment and yield movements, which impacted Q4 FY26 results.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The bank provides both YoY and QoQ figures for various metrics. YoY is crucial for assessing overall annual growth and performance trends, while QoQ helps evaluate sequential momentum, particularly in deposits, credit, and asset quality improvements.
Gross Advances Growth
Gross advances grew by 19.44% on a YoY basis.
Deposits Growth
Deposits grew by 11.59% on a YoY basis. CASA growth was around 12.46% YoY.
CASA Ratio
CASA ratio was 38.65%, improved by 75 bps over last year.
RAM Segment Growth
RAM segment grew by 24% plus. Retail advances grew by 26% plus, Agriculture advances grew by 26%, and MSME advances grew by 19%.
Guidance for FY27
Management expects to surpass FY27 guidance: deposits 10-12%, credit 12-14%, CASA 37-38%, RAM 62-65%, CD ratio 80-82%, credit cost <0.75%, NIM global 2.8-2.9%, GNPA <2%, NNPA <0.2%, slippage <1%, recovery Rs.2,000-2,500 crore.
ROA Target
Management believes the bank should be nearing 0.95% to 1% ROA levels by the end of the next financial year.
QIP Plans
The bank will seek shareholder approval for QIP and proceed at the 'right opportune time' when the market supports, not in the immediate quarter.
Digital Initiatives
Further initiatives planned include Omnichannel, Cash Management Services, Supply Chain Finance, Robotic Process Automation, and converting the call center into a profit center.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Credit Growth | 19.44% YoY (FY26) | Sustained growth above 12-14% guidance, particularly in RAM, without compromising margins in corporate lending. |
| Asset Quality (GNPA/NNPA) | GNPA 2.17%, NNPA 0.27% | Continued reduction towards management's guidance of less than 2% GNPA and less than 0.2% NNPA. |
| Return on Assets (ROA) | Around 0.8% (FY26) | Progress towards the management's target of 0.95% to 1% ROA by the end of the next financial year. |
| Digital Business Contribution | Rs.25,000 crore (FY26) | Expansion of digital business volumes and successful implementation of planned omnichannel and other digital initiatives. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -9.8% / mo
Technical chart
UCOBANKdaily · 1Y-17.2%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 57. Wait for confirmation.
- SMA20 falling (~5.8% over last month) — short-term momentum negative.
- RSI(14) at 57 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 20% off 52W high · 17% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 64.2%.
- Valuation contributes 24/30 to the score.
- Balance sheet contributes 11/15 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
- Growth is weaker at 16/25; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -2 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 64th percentile of the scored universe and 81st percentile within Financial Services. Main check: cash conversion is weak at 52/100.
Healthy Trust Lite: Promoter holding is 91%. Key concern: Operating cash flow is negative at ₹-10584 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 81st pctile, median 62 · Large: 39th pctile, median 74
60 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 91%.
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸Debt/equity is 0.07.
Trust risks
- ▸Operating cash flow is negative at ₹-10584 Cr.
- ▸ROCE is low at 5.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 11.30
- P/B
- 0.94
- EV/EBITDA
- 146.97
- Market Cap
- 31362.00Cr
Profitability
- ROE
- 8.61%
- ROCE
- 5.55%
- ROA
- 0.70%
- Dividend Y
- 1.76%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- 110.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- 14.00%
Balance Sheet
- Debt/Equity
- 0.07
- Interest Coverage
- —
- Altman Z
- 1.81
- Book Value
- 26.50
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- -10584.00 Cr
- EPS TTM
- 2.21
Shareholding
- Promoter Hold
- 90.95%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 23%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.