UCO Bank, Central Bank of India shares rally up to 7% after Q4 solid earnings

Shares of UCO Bank and Central Bank of India surged on Tuesday after both state-run lenders posted strong earnings growth for the March quarter, aided by improving asset quality and stable credit expansion.

UCO Bank shares jumped as much as 7.3% to Rs 33.15 on the BSE, while Central Bank of India gained up to 4.9% to Rs 39.25. Both banks had reported their quarterly results after market hours on Monday.

UCO Bank net profit rises 24%, asset quality improves

Kolkata-based UCO Bank posted a 23.7% year-on-year rise in consolidated net profit to Rs 665.72 crore for the fourth quarter ended March, compared to Rs 537.86 crore a year earlier. Total income climbed to Rs 8,136 crore from Rs 6,984 crore during the same period.

For the full financial year, the lender reported a consolidated net profit of Rs 2,468 crore, up from Rs 1,671 crore in FY24.

Asset quality showed notable improvement, with the gross non-performing asset (GNPA) ratio falling to 2.69% from 3.46% a year earlier, and the net NPA ratio improving to 0.50% from 0.89%. Provision coverage stood at a robust 96.69%.

The lender’s total business rose 14.1% to Rs 5.13 lakh crore, driven by 17.7% growth in gross advances and an 11.6% rise in deposits. Growth in its retail, agriculture and MSME (RAM) loan book was particularly strong at 25.7% year-on-year.

The government’s holding in UCO Bank diluted to 90.95% during the quarter from 95.39% due to capital infusion.

As part of efforts to meet SEBI’s minimum public shareholding (MPS) norms, UCO Bank plans to issue up to 270 crore fresh equity shares in the 2025-26 fiscal, a top official said. The move follows its successful Rs 2,000-crore qualified institutional placement (QIP) in the March quarter, which diluted the government's stake to 90.95% from 95.39%.
UCO Bank shares remain down 43.8% over the past year and trade below five of its eight key simple moving averages including its 30-day, 50-day, 100-day, 150-day and 200-day SMAs. Its 14-day Relative Strength Index (RSI) stood at 41.1, indicating neutral momentum.

Central Bank profit up 28% even as NII declines

Central Bank of India reported a 28% jump in net profit for the March quarter to Rs 1,033.6 crore, compared with Rs 807.3 crore in the same period last year. Total income rose 7.6% to Rs 10,433 crore, although net interest income (NII) declined 4% to Rs 3,399 crore.

The Mumbai-based lender saw further gains in asset quality. GNPAs fell to 3.18% from 3.86% in the previous quarter, and NNPA improved to 0.55% from 0.59%. Return on assets rose to 0.90% and return on equity climbed to 13.21%.

Central Bank shares have fallen 42% over the past year but edged up 1.5% in the past week. They had closed 1.55% higher on Monday ahead of the results announcement.

Also read | UCO Bank to issue 270 crore shares in FY26 to cut govt stake to 75%

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