UCO Bank Reports Improved Asset Quality and Profit Growth Amid Ongoing Challenges in Non-Operating Income

UCO Bank, a prominent player in the public sector banking industry, has recently reported its financial results for the quarter ending June 2025. The evaluation changes reflect a notable shift in the bank's score, which has adjusted to 7 from 10 over the past three months.
The financial results indicate several positive trends for UCO Bank. The gross non-performing assets (NPA) have reached a low of 2.63%, continuing a downward trajectory over the last five quarters. Similarly, the net NPA stands at 0.45%, also marking the lowest level in the same period. This decline in stressed loans suggests an improvement in asset quality. Additionally, the profit after tax (PAT) for the nine-month period has shown growth, reaching Rs 1,898.70 crore, which represents a year-on-year increase of 20.20%. The operating profit has also reached its highest point in five quarters at Rs 565.06 crore, indicating a positive trend in operational efficiency, with the operating profit margin at 8.78%.

However, challenges remain, particularly with non-operating income, which constitutes 105.39% of profit before tax. This high reliance on non-business activities raises concerns about sustainability.

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