Good afternoon, everyone. Thank you for joining UCO Bank Q2 FY 2027 earnings conference call. Today, from the management side, we have with us Mr. Rajendra Kumar Saboo, MD and CEO, sir, and Mr. Vijay N. Kamble, Executive Director. We will start with the opening remarks by the MD, sir, post which we will have a Q&A session. With this, I hand over the call to the MD, sir, for his opening remarks. Thank you, and over to you, sir.
Thank you. Good afternoon to all. Welcome to all analysts and investors in this analyst meet con call for the financial results of UCO Bank for the quarter ending September 30th, 2026. Already, the results have been published on the website of stock exchanges. Press release has also been published, and investor presentation has also been placed on the website, on the website of BSE, NSE as well, and our bank's website. I hope that you must have gone through that. Still, I will just give the brief about various highlights of our result for the quarter and half year ending September 30th, 2026.
The total business of the bank has reached to INR 637,280 crore, registering a growth of 18.81% year-on-year. In this, the total gross advances, global advances of the bank has grown by 24.70% year-on-year, reaching to INR 287,690 crore. Our total deposits have grown by 14.36%, reaching to INR 349,590 crore for the period. Out of this deposit, CASA growth has been 10.59% year-on-year basis, reaching to INR 122,259 crore, in which savings deposit has grown to INR 103,736 crore with a growth rate of 9.10%, and current deposit has grown to INR 18,523 crore with a growth rate of 19.70% year-on-year basis. Thereby, our CASA ratio has been maintained at 36.77%.
This is a slightly lower than the June quarter. Whereas the advances have grown by 24.70%, the growth has come from all the sectors like retail, agri, MSME, and corporate. So, the retail advances have grown by 29.59%. Sorry, retail has grown by 30.23% and agriculture has grown by 29.59% and MSME has grown by 20.32%. Overall, RAM sector growth has become 26.92%, and total RAM portfolio stands at INR 168,736 crore.
With this growth in advances and deposits, our profitability has also improved. So our operating profit is INR 1,872 crore for the quarter, with a growth of 16.04%. Net profit has grown to INR 786 crore, growth of 26.77% year-on-year basis as against INR 620 crore in the last year, September 2025. The NIM has been maintained at 3% for the global, and domestic NIM has been maintained at 3.19% for the quarter. This profitability is also coupled with the asset quality improvement as well.
Our gross NPA ratio has reduced year-on-year by 60 basis points to 1.96%, and net NPA ratio has improved by 25 basis points year-on-year, and the net NPA ratio stands at 0.18% as on September 30th, 2026. If you see these growth rate and profitability and NPA position, our guidance in the beginning of the year, which we have given, the actual are exceeding the guidance except for the CASA ratio. While we have given growth guidance in deposits of 10%- 12%, our growth has been 14%+ . We have given guidance in advances growth of 12%- 14%.
The growth has been 24.7%. Our guidance on the GNPA was to make it less than 2% by March 31st, 2027. We have already, in half year, we have brought it down to below 2%, and our GNPA ratio is 1.96%. Same way, our guidance for the net NPA ratio was to bring it down below 0.25% for the year, but in the half year itself, we have brought it down to below 0.20%, that is 0.18%. Our capital adequacy ratio stands at 18.85%, with Tier One ratio is 17.27%. Our CD ratio has improved to 82.29% as against 75.47% in the previous year.
Our total provision coverage ratio, including TWO, has increased to 98.36%. Our net interest income, if you go deep in the profitability, our net interest income has grown by 13.96% year-on-year to INR 2,886 crore. Our cost of funds has increased somewhat, a little bit, to 4.44%. Our yield on advances is 8.11% for the domestic and 7.79% for the global for the quarter. Our cost-to-income ratio is 50.39% for the quarter ended September 30th, 2026.
Return on assets is annualized to 0.80%, which was 0.71% last year. Out of the non-interest income, our fee-based income has grown 34.66% to INR 558 crore in the quarter. Our slippage ratio, also we have given the guidance of slippage ratio to keep it below 1%, and for the quarter, it is 0.85%. Thereby, we have also maintained our slippage ratio below the given guidance. The productivity also has improved, like business per employee of the bank stands at INR 30 crore, which was INR 25 crore last year. Same way, business per branch has also improved to INR 185 crore as against INR 161 crore, which was in the last year.
We have a branch network of 3,439 branches, and we have added 27 branches. We have three international branches, like Hong Kong, Singapore, and we have opened our GIFT City IBU also in this quarter only. Mainly, this is the highlight of the business and profitability and asset quality. I will just quickly present a few initiatives we have taken during the last quarter, which has helped us in growing the business as well as improve the profitability and asset quality. Like we all know, the CBDC is also a very important means of development in the Indian economy.
Our bank is also working to bring the CBDC offering for the customers. In the last quarter, we have launched two special features on CBDC. One is UCO Digital Rupee Marketplace, where the CBDC can be utilized through CBDC wallet. The marketplace has been connected, and many type of payments like ticket booking, gift cards, and all those things can be booked through CBDC as well. We have also launched our CBDC IVR services, whereby offline also, customers can utilize the CBDC.
We have started our robotic process automation process, wherein seven processes have been automated through RPA. We have implemented digital martech solution so as to do the digital marketing for our products. As we know that the bank has undertaken Project Parivartan, wherein our digital business balance sheet has grown to INR 48,000+ crore as on September 30th, 2026. To increase the digital business balance sheet size further, we have onboarded digital marketing solution as well, which will help us in this.
We all know that UPI is also a very important payment channel, and constantly there are many improvements in the features of UPI. Recently, in the Global Fintech Fest in Mumbai, many new features have been launched, and UCO Bank has also been participating in this. We have launched UPI Tap and Pay, we have launched UPI Help 2.0, and we have also launched a UPI automatic surveillance system wherein any VPA, any QR code where the customer wants to make payment, that can be checked for its authenticity or genuineness. Same way, we have also launched an online self-service module where the customers can book certain services from the website of the bank.
We have also started a customer 360-degree portal in our branches, wherein the customer's entire 360-degree view is available to the branch. This helps branches to do the cross-sell and better customer service. I already told you that we have opened a GIFT City branch in the last quarter, which has been doing good business as well. We have launched many new products as well in agri, retail, and MSME to take it ahead, as well as we have also launched some products in deposit aspects. We have done a launch for eFDR under MCX.
We are already live for eFDR in BSE and NSE. Now we have added MCX also, Multi Commodity Exchange also, where brokers can make eFDR through our bank. To strengthen our CASA position, we have done many MoUs with various government departments and large institutions. We have entered into an MoU with the Government of Bihar for their employee salary accounts. We have been empaneled by the State Government of Rajasthan as well for the salary account package for their employees. Same way in HR also, we have been doing recruitment wherever needed.
In the current financial year, we have recruited some specialist officers, which are data analysts, CAs, and trade finance officer, et c. For the next year also, we have started some recruitment process for probationary officers and other customer service associates. I think these are the major developments in the last quarter we have undertaken to improve our service offering for the customers. Now I open the floor for all the analysts and investors for their queries. We will try to reply to those queries. Please.
Thank you, sir.
Thank you.
We will start with the question- and- answer session. Participants, those who have any question, please raise your hand. We will take the first question from the line of Ashok Ajmera. Please go ahead.
Good evening, Rajendra Kumar Saboo, Kamble , and the entire team of UCO Bank. Yes, congratulations to you for yet another good quarter of very good performance, especially but for that, I think one time, one-off recovery in the last quarter, our operating profit, otherwise is better than the Q4 of 2026. Only a few points, sir. On the asset quality also, basically overall the gross profit has gross NPA has also come down, the net NPA also—
Sir, we are losing you. We are not getting your voice properly. There is a voice break in between. Please repeat.
It's INR 301 crore. I think there is—
Sir, we are not getting your voice.
Ashok Ajmera, we are losing you, your line in between. Can you please come back in the good network area?
Can you hear me?
Yes, now we can hear you. Can you please repeat your question?
Hello?
Hello.
Yes, sir. Yes. Can you hear me now?
Yeah, it is better.
Hello.
Yeah, it is better now. Please go ahead.
Please go ahead.
Okay, sir. What I was, in fact, telling, I think you must have heard me, the initial my message. Congratulations to you.
Yes.
My only few pointers which are there, is number one, the recovery from the written-off account of INR 301 crore in this quarter against the INR 1,018 crore. Is it a normalized rate of recovery or this quarter was a little passive as regard the recoveries are concerned? Similarly, on the treasury also, everybody knows, there is a pressure on the treasury because of the yield hardening up. Going ahead, going forward, what do we see on the treasury front also? Connecting with this, sir, the slippages have gone a little bit up in this quarter from INR 428 crore- INR 538 crore. Likewise, the SMA-1 numbers have also gone up from INR 228 crore- INR 437 crore. Some color on that, and then I will ask my second question, sir.
Okay. Thank you, sir. Coming to the first question of TWO recovery, I want to say that last quarter, June quarter, yes, there was a one-off TWO recovery in one big account that was around INR 785 crore. If we remove that INR 785 crore from that recovery, the net recovery in the last quarter was, I think, INR 233 crore. Against INR 233 crore of TWO recovery—
Yes.
—in the last quarter, our normalized recovery is INR 301 crore in this quarter. This is the normal recovery. In this quarter, we don't have any such big recovery account. That was one-off in the last quarter. I think going forward, yes, as you know, that most of the bigger accounts recovery has already happened. So now the TWO recovery will be normalizing, and this is the normalized recovery, only INR 300 crore around we will be trying to keep it, going forward also. The second point of your question was about treasury yields. We all know that the yields have been hardening, not only in India but across the world also.
That has impacted the treasury profitability. Going ahead, it will depend again on the yields, as how the yields will be behaving. We all know that there has been a rate hike by RBI also, 0.25% repo increase has been there. We do not know, we have to see how this pans out going ahead, how the inflation data, growth data comes, and basis that what action is taken. But as of now, the yields are hardened. In the hardening yield scenario, we all know that the treasury profitability is under pressure. But yes, on the other side, we see good interest income from the advances.
As you know that the repo rate hike has already been passed immediately, and we have around 66% of our advances portfolio linked with the repo rate, external benchmark lending rate. We will see improvement in the yield as well as net interest income with this repo hike. This will be compensating more or less to the treasury losses if you see any going ahead. That is the situation there. But because we have very limited amount of book in FVTPL under treasury also, that is also very curtailed.
Any treasury losses are not that much, which may be of concern. That is a normal thing, and we have a very controlled portfolio in FVTPL under treasury. That is not a concern. Then slippages, you have said rightly that yes, slippages have been higher on this September quarter. We all know that in the September quarter, there is a classification exercise due for Agriculture advances. Agriculture advances, crop loan particularly, are classified only on half-yearly basis.
This quarter as well, September, this has become due and the highest slippages are only due to the agriculture marking. If you see half year to half year, last year September to this year September, then we can compare it very well and we will see that this NPA slippage has even come down from the previous year to this year September quarter. Overall, the asset quality has been therefore maintained. As you can see that the last September 2025, overall slippage was INR 629 crore, which has now come to INR 549 crore. This is the position in slippages.
As far as SMA is concerned, SMA, you have said that yes, there has been a little hike in SMA-1 and 2, but yes, still it is under control because SMA, we all know that this depends on the rate, what is the position of demand and recovery. Little bit it moves back and forth, but we are still maintaining SMA level of 0.42% only. That is INR 1 crore and above. We always declare SMA of INR 1 crore and above, and that is 0.42%. If we compare it again year-on-year basis, there is improvement, 0.77%- 0.42%. Maybe yes, quarter-on-quarter, there is a little spike, but that is also manageable and normal. Nothing is abnormal into this SMA position also.
Because one to two accounts.
This is my position in this regard. I think I satisfied your queries.
Yes, sir. You are very well satisfied, sir. This rate hike which is there, and now you said that 67% portfolio, the repo rate linked and the rates immediately have gone up there. Similarly, now what is our exercise going to be for the deposit rate hike? Is there any time lag which will give us the benefit in this quarter, like especially the October-December quarter, and maybe the lag effect of that might come in a little later. Can you just little bit give some color on that, sir, that when are we going to do the exercise to increase the deposit, and to what extent the deposit increase will take place? Deposit rate increase.
Yeah. So sir, you have rightly said that there is always a lag effect in the rate of interest on deposits to the rate of interest on advances. Immediately, because external benchmark lending rate we immediately pass on, so advances rate linked to the repo rate are already increased. But deposits, you know that whenever the situation will arise that, yes, we have to mobilize the deposits and we need to increase the rate of interest, that we will increase. Then gradually, whenever the renewal of the deposit will fall due, that will be applied because the increased interest rate on deposits will apply only on the new deposits.
So that is the case there. But as of now, we don't see that immediate need is there for increasing interest rate on deposits. As of now, we are maintaining whatever the rate of interest is already there on the term deposits in our bank. We are maintaining that. Maybe going forward, we will see the situation as to how the requirement of deposit is there and how the supply comes there, and whether we need to increase, we will take an appropriate call in due course of time.
Sir, on the credit growth, our growth is good. But our major growth is still coming from the RAM sector only, retail, agriculture, little bit of MSME. On the corporate front, is there any change in our stance? Are we now started looking at some good corporate accounts, good credit? From there also the credit growth may come and you might increase your target of the overall credit growth for the current year because you have been doing very well even in this quarter also. I think the credit growth is 5.47% overall. From the corporate book, where do we stand and what kind of sanctioned pipeline and the projects in pipeline do we have on that front?
Sir, as I told in my opening remarks also that our advances growth has come from all the sectors. Our retail advances have grown 30%, agriculture advances have grown around 30%, MSME 20%, and even corporate advances, which you are talking about, have also grown 24% year-on-year basis. It is not like that we are not looking at corporate advances. We are looking at corporate advances as well. That is why we have grown by 24.15% year-on-year in corporate advances as well. But yes, our guidance was that our RAM share will be 62%- 65%.
We have reached the 65%. We have already crossed 65% in this quarter in RAM share. We will be maintaining around 65% only, and maybe the growth will be evenly spread, and we will be maintaining this ratio. The corporate growth will also be there and RAM sector growth will also be there. As far as the sanction pipeline is concerned, we already have around INR 10,000 crore sanction pipeline in the corporate advances.
And sometimes you know that in the corporate advances, the disbursement are subject to the yield on advances available, rate of interest available, means rate of interest the corporates are ready to pay. I also think that with the hike in the repo rate and the overall scenario in the market, corporates, whenever they need to avail the credit lines— If the rate of interest offered is in our requirement, we will definitely go for that also in further enhancing our corporate advances portfolio.
Sir, just a last small question, sir. These other operating expenses in this quarter have gone up a little bit by INR 160 crore. Is it normal or is there also maybe INR 50 crore or INR 100 crore, some one-off account, or is it going to be there in the remaining quarters?
Actually, if we see when the business is growing and when we are expanding our network also, when we are expanding our IT solutions also, the investments are happening in the IT solutions, in physical infra, in other things also as well. Normally, the operating expenses will also grow. I think that there has been a lag effect in operating expenses growth as well. We have been maintaining this growth in a few quarters in the last year. I think this quarter's operating expenses reflect the true picture of our growth as well as our expansion plans. This is normal. Nothing is abnormal there also. Normal growth is there, depending upon the number of transaction volumes we are undertaking. That will be in the same range going forward.
Okay, sir. Thank you very much, both of you, sir. If time permits, I will come again.
Thank you, sir.
Okay. Thanks a lot.
Yes.
All the best to you, sir.
Thank you.
Thank you, sir.
We will take the next question from the line of Ashlesh. Please go ahead.
Hi, sir. Good afternoon.
Good afternoon.
Sir, just two quick questions from my side. Firstly, on the ECL estimate, what is the impact estimate you expect on the one-time transition in April 2027? Is there any change to that estimate because of the changes in bond yields? That is question one. Secondly, on the gold loan portfolio, I wanted to check if there has been any change in the yield on that portfolio over the last quarter.
Yes, to your first question, ECL. We have done a rough estimate so far, and our ECL estimate is on the first time, transition date, April 1st, 2027. It is calculated around INR 2,500 crore requirement we will have. You can see from our results also, today also in the quarterly results we have provided for ECL provisioning beforehand. We have over and above, whatever is the requirement. Actually, we have covered at least, I think, 70% of our requirement of ECL transition provisioning, basically. I think we have already maintained over and above provision of INR 2,500 is against the requirement of ECL of around INR 3,200 crore+ .
We do not have much gap there. We will be providing maybe in the next few quarters also, as and when the profitability permits us. Against the requirement, this is around INR 3,200+ . We have already a provision of INR 2,500, out of which INR 530 crore is the provisioning kept for the COVID, that we are continuing, that we can also use. There are certain other provisions, around INR 340 crore is some extra provisioning we have done.
That is also there. Then we have around INR 1,600 crore+ provision in the ECL, for ECL as well, specific. Total INR 2,500 crore provisions we have already made over and above the required one. That is the situation there. The next point, gold loan, you have asked. Gold loan yield, we have not seen any significant change in the gold loan yield. That is maintained as was in the last quarter also.
Understood. Sir, just a few clarifications there. This INR 3,200 crore number for ECL transition. Was the estimate different when you did the calculation three months ago?
I think it is not materially different, maybe slightly changed because of our increased advances book and these small factors. There is a slight change, not much.
Understood. Sir, if you can just call out what is the gold loan yield as of now?
Gold loan yield, we have not separately calculated, but there is no change in the gold loan rate of interest in the last quarter. We have not made any changes. But yes, if there are any gold loans which are linked to the EBLR, then that is automatically with the repo rate hike, the EBLR rate also will be increasing. So yield on gold loan portfolio otherwise is around 9%, slightly less than 9%.
That is true. Perfect, sir. Those were all the questions I had. Thank you very much.
Yeah.
Thank you. Participants, please raise your hand for the question. We will take the next question from the line of Amit Mishra. Please go ahead. Amit, your line has been unmuted. Please go ahead with your question. As there is no response, we will move to the next participants. We have a next question from the line of Sushil Choksey. Please go ahead with your question. Sushil, sir, please go ahead with your question, please. Meanwhile, we will take the next question from the line of Rusmik Oza. Please go ahead. We have a next question from the line of Amit Mishra. Please go ahead. Your line has been unmuted. We have a next question from the line of Sushil Joshi. Please go ahead.
Sir, congratulations on excellent performance in the current condition.
Thank you.
Sir, you have answered quite a few questions to the previous questioners. Sir, what is best? You are well capitalized, you have good deposit growth. The interest rate cycles are always favorable to banks on lend. Would you like to accelerate your growth, be it in RAM or corporate, or what is your outlook base? You have said that corporate book is INR 10,000 crore book is sanctioned. How is the pipeline looking for Q3 and Q4 from both the sectors, RAM as well as foreign? If there is any slowdown which you are impacting led by agriculture or anything, whatever comment you have on that, sir.
Yes, as you know, sir, we have already given a guidance of advances growth. We have given guidance of 12%-14% growth in advances, but actually, we have grown by 24.7% in this quarter. So already we have surpassed the guidance given, and we have seen this growth coming from all the sectors, as I have told, from retail, agri, MSME, corporate, all. Depending upon the situation in the market, as you have rightly pointed out that the scenario is good and credit growth is happening in the economy as well. So we will be keeping this pace maintained.
Our target is to keep our growth more than the guidance we have given already, and we will continue to maintain that and the growth will continue to come from all the sectors like retail, agri, MSME, and corporate. As I told, we have around INR 10,000 crore pipeline in the corporate credit, which is already sanctioned, but not yet disbursed or not yet availed. It will depend on the market situation and as I told that what the rate of interest scenario pans out and how the corporates go for availment.
Also on the CapEx plan of the corporates, we will see, and accordingly, we will respond. We are ready to take up the growth, whatever the credit growth we can take up in all the sectors. Also in the retail agri, we are growing with a good pace. In MSME, yes, there is little more scope for growing. We will see onto that also, and we will maintain the growth as we have already guided.
Sir, if I—
Yes, sir.
If INR 10,000 crore—
There is some disturbance from your line, sir. Please repeat.
Sir, if your corporate book is showing INR 10,000 crore pipeline, RAM should be showing on 2/3 , 1/3 basis, much higher number at INR 15,000, INR 17,000 crore. Are we working with that kind of a number, or you may be conservative in your guidance at 12%-14%, but actual number you may deliver at 50%, 70% higher, which means, there is absolute reason that the bank should revise the guidance upwards.
Yes, you have rightly pointed out, Joshi, but you know that the guidance approved by the Board in the beginning of the year, normally, we continue with that guidance only, and we don't change during the year. Normally, we don't change. But yes, last year also the guidance was like that only, but we grew more than that. And this year also, we hope that, yes, guidance is 12%-14%. That was given in the beginning of the year, keeping in view the scenario at that time. But yes, as we move ahead in the year, we will see and we will try to grow more than that, of course.
And as you have seen the rate of growth in this quarter, 24.7%, so it is nearly 25% growth. So it has come handy in this quarter. Maybe not up to that level, 25% is very high growth. But still, yes, we will be maintaining good growth and more than the guidance given. But I will not take any guess on the future growth rates as of now. But yes, we are in the trend of good growth.
Sir, I would ask a question on your, specifically retail. We all know that housing market rates are higher in terms of percentage of ticket. Cars are not being bought on a normal, small but SUV and gold loan. The average ticket per lending is going up by 30%, 50% or number of customers you have increased?
This is comprehensive growth. Number of customers also grows. We are onboarding more borrowers, more customers on the housing loan and vehicle loan, as well as the ticket size is also improving. Both ways we are seeing good growth, and you see that housing loan growth has been 20%+ year- on- year this quarter. This is helped by volume as well as enhancement in value.
Sir, how much would be value and how much would—
This analysis we have to do actually as to how it is bifurcated. But yes, of course. Yeah. 46% ticket size. Yeah. The average ticket size has grown. I think this was around INR 35 lakh earlier, average ticket size, which has also grown to around 30%, by 30% to around INR 45 lakh. And number of home loan borrowers have also increased. I think both are mixed way. We can't bifurcate exactly as to how much growth is from whom. But yes, both are contributing.
Sir, you were one of the—
Sir, not audible.
—early one. Sir, every year I have been asking this question. The second-hand car financing, you have been pioneer ahead of other PSU banks. How is that business looking? Because that market is growing leaps and bounds. Are we garnering more market share? Are we tying up with many platforms, even listed companies are doing where the partnerships are visible? Do you see faster growth in that segment or that is stagnant?
Yes, we have the product, but as such, we have not analyzed it separately because we see vehicle loan growth in a consolidated manner only because this is a product for the customer's requirement as to whosoever customer wants to avail the loan on second-hand or resale car market. So that is also available, but we have not yet analyzed in that way. I don't think that this is a very big amount. This is still a very small amount in the overall portfolio of our car loan. But yes, numbers, of course, we will work out, and we will come to you for the exact position as to how this is growing and how the new vehicle market growth, loan growth is happening.
Sir, the yield on second-hand car will be 100 basis points-150 basis points higher than a normal car loan. That is why I am asking that question.
Yes. That is correct. Yield will be higher. But, yes, we have to see it like in your perspective, that is a good thing. We will analyze.
Sir, if I am not mistaken, you answered this to Ajmera, that external benchmark percentage of your loan is 62%. Am I to assume that your NII growth will be far greater than any impact which comes from treasury, which you are holding for AFS category?
Yes, sir. I told that our 66% portfolio is linked to repo, means EBLR. Right?
That is right.
NII growth will more than compensate, I have told, the treasury stress, if there is any. But I also told that we do not have much in the FVTPL portfolio of treasury. I am talking about only FVTPL portfolio for which we have to do the M2M in the profit and loss account. That is also very small portfolio. So we cannot compare it, but yes, we can say that is under control. And hike in repo rate will yield us higher net interest income going forward.
Sir, how do you see your NIM on a domestic basis and a global basis in the second half of the year?
Our global NIM is 3%. We have given guidance of 2.80%- 2.90%, and we are maintaining our global yield beyond that. The latest quarter, the global NIM has been 3%, and domestic NIM has been 3.19%. I think with the repo rate hike get pass on in the EBLR linked portfolio, we will be able to sustain this NIM beyond whatever guidance we have given. We will be maintaining our guidance—
How—
—as well as our performance.
How is your recovery looking in the second half from the written-off assets?
As I told that, written-off assets, now the big accounts, mostly big accounts have been taken care of. Whatever the recovery we were expecting, that has mostly come, and now the focus is on the remaining residual portfolio, PWO, which are smaller accounts, even may not be through NCLT. Maybe other recovery measures we will utilize, like maybe SARFAESI, maybe OTS. And we have good NDND, non-discretionary, non-discriminatory, OTS scheme also. So through these various measures, we will try to recover from the smaller size, bigger size portfolio of PWO. And as I told that our recovery from PWO this quarter has been INR 300 crore. So we expect that we will maintain within this range in PWO recovery going forward as well.
Sir, my last question in this round, you've been doing well in Singapore, Hong Kong and GIFT City has also started. Do you see there's going to be a meaningful impact because of very established relationship with global companies other than Indian corporates in the overseas market, and utilizing GIFT City, the international book can contribute meaningfully?
Exactly, sir, we have been running these two branches earlier, Hong Kong and Singapore, so both the branches are doing well, and now the GIFT City branches has also started functioning, and I think we will be taking advantage of the GIFT City. We all know the taxation benefit and other benefits in the GIFT City as well. We will be keeping a balance between the three branches, and I think the opportunities are enough, and potential is there for every branch to grow.
I hope, and I expect that we will be growing in all three centers reasonably well going ahead as well. It is not like that we have opened GIFT City, so Singapore or Hong Kong will not be growing. I think overall overseas business, we will be seeing reasonable growth with contribution from all three branches.
Sir, you may reply to my next question or not, I don't know, but looks like all PSU banks have accelerated their result in this quarter. Do you think the current government is likely to do a "dhamaaka" in Diwali for some "mauj?
See, result acceleration, I don't think is any point, which is means declaration of results is purely on the basis of our internal arrangements because this is subject to limited review and availability of auditors and all those audit and limited review exercise completion. Depending on that, we decide the date, maybe little bit here and there. That is the situation we have declared today, and I don't think there is anything, means I can't reply to you for the next question you already expected no reply from me. Nothing like that is there as of now.
Sir, good luck to you.
Thank you.
You've done a good job, and hopefully we see better numbers in the second half with your existence.
Thank you, sir.
Thank you, sir. We will take the next question from the line of Amit Mishra. Please go ahead.
Hi, sir. Good evening, and thanks for the opportunity.
Yes.
Few questions. First of all, can you give me the breakup of slippages due to agri marking and non-agri marking this quarter?
Agri and non-agri. Okay. We have in our presentation also given the numbers. I will just repeat for your information ready reference. Our agriculture slippage is INR 205 crore out of INR 549 crore, and this was only INR 73 crore in the last previous quarter, June 2026. There is an increase of INR 132 crore in the agriculture slippages during quarter-on-quarter, if you see, but it is still below the previous year's slippage.
Last year, September 2025, agriculture slippage was INR 238 crore, which is now INR 205 crore only. There is a year-on-year, there is an improvement in the slippage. But yes, because I told that agriculture marking happens in September and March. So in September, there is a marking in the crop loan in agriculture, and that's why there is an increase in agriculture slippages. That is INR 205 crore out of INR 549 crore.
Okay. Sir, this quarter's overall provisioning is higher. Out of that, you mentioned some portion is ECL provisioning. How much would be that, and what would be your credit cost for the whole year? Do you expect around 60 basis point or higher? Last year's was around 60 basis points.
Yes, as I told that we have made some ECL provisioning also, forward-looking provisioning for ECL, and in this current quarter, our ECL related provision has been INR 570 crore. NPA provisioning, because you see that our net NPA has come down to 0.18% now. That is within our guidance of 0.20%. We have done accelerated provisioning to achieve the guidance, and that is why our NPA provision has increased, and our credit cost is 0.65%. Again, we have given a guidance of credit cost to maintain it below 0.75%. This is well within the guidance of 0.75%. It is less than that, and we expect to maintain it below the guidance, 0.75% going forward also for the current financial year.
Okay. Sir, my last question is on credit cost. What would be your normalized credit cost for the full year? How much you expect? Because from past, if you see quarter-on-quarter, every quarter our cost to income is around 52%, 53%. For this year, how much are we expecting? Because Q1 it was 30%.
Cost to income ratio—
Yeah. Yeah, continue sir.
Cost to income ratio, you are asking, sir?
Right.
So cost to income ratio in the September quarter is 50.39%. Actually, in June, we had a one-time recovery—
Correct.
—which contributed more income, and thereby the cost to income ratio was lesser. If we remove that effect, it was around 45%, and this quarter it is 50.39%. So we expect that we will be maintaining around this only. For the full year also, we will be maintaining around 50%. We will be trying to bring it below 50%, but maybe we will have to see. But definitely it will be less than the previous year's level. Like in the September 2025, it was 52.79%. So we are improving this towards 50%, and then we will be taking it below 50% maybe the next year.
Okay. Thank you, sir, and all the best for future.
Thank you. That was the last question for the day. I hand over the call to the MD, sir, for his closing remarks.
Thank you, and thank you for all your support and arranging this concall with all our esteemed analysts and investors. I think we have already given the overview of the results as well as addressed the queries raised. I think the detail is already given in the presentation as well as in the results and press note. I think whatever the guidance we have given in the beginning of the year, we are mindful of those guidance levels in the various business parameters, and we are trying to maintain that guidance. We will see that maybe going forward also, we will continue to maintain that guidance. Thank you for all your support, and if there is any further query, you are always welcome, if you need any further interaction as well. Thank you so much.
Thank you. That concludes the UCO Bank Q2 FY 2027 earnings conference call. You may now disconnect your line.
Thank you.