UCO Bank Share Analysis: Comprehensive Overview 2025

UCO Bank at a Glance

Founded in 1943; Government of India Undertaking
Market Capitalization: ₹38,747 Cr (Dec 2025)
Promoter Holding: 90.95%
Branch Network: 3,302 domestic branches
Overseas Branches: Hong Kong & Singapore

Recent Share Price & Valuation Snapshot

Current Share Price (Sept 2025): ₹29.3
52-Week Range: ₹26.8 – ₹60.7
Price-to-Book (P/B): ~1.15 – 1.36
Price-to-Earnings (P/E): ~14.7 – 15.7
Sector Average P/E: ~8.99
Dividend Yield: ~1.26% – 1.33%
Book Value per Share: ₹22.8 – ₹25.5

Financial Performance Highlights (FY24–FY25)

Total Income grew 17.3% YoY to ₹29,474 Cr
Net Profit surged 47.8% YoY to ₹2,445 Cr
Net Interest Income (NII) rose 23.35% YoY in Q4 FY25
Q4 FY25 PBT: ₹1,036 Cr (+23.8% YoY)
RAM (Retail, Agri & MSME) book grew 25.74% YoY to ₹1,22,613 Cr

Asset Quality & Risk Metrics

Gross NPA reduced to 2.69% (Mar 2025) from 3.46% (Mar 2024)
Net NPA improved to 0.50% from 0.89%
Contingent Liabilities: ₹1,36,430 Cr
Interest Coverage Ratio remains low

Growth Drivers & Business Mix

Revenue Mix (Q1 FY25):
- Corporate Banking: 35%
- Treasury: 35%
- Retail Banking: 29%
Deposits grew 11.56% YoY to ₹2,93,542 Cr
Advances increased 17.72% YoY to ₹2,19,985 Cr
61% branches located in rural & semi-urban areas

Valuation & Market Sentiment

Intrinsic value models suggest ~168% overvaluation
1-Year Share Price Return: ~ -37%
Recent price momentum: Neutral to bearish
Moderate P/E vs PSU peers but weaker price performance

Peer Comparison & Competitive Positioning

Key Peers: PNB, Bank of Baroda, Union Bank, Canara Bank, Indian Bank
Strong management risk and growth ratings
Capital structure rated healthy
1-Year returns underperform most PSU peers
Dividend declared: 3% for FY25

Strategic Initiatives & Future Outlook

₹2,700 Cr equity raise planned via QIP/FPO in FY26
Focus on RAM lending and digital banking expansion
Asset quality improvement expected to sustain
Profitability and dividend growth to support sentiment

Conclusion: Investment Considerations for UCO Bank

UCO Bank has demonstrated strong recovery momentum through robust profit growth and consistent improvement in asset quality. Government backing and rural focus add long-term stability.

Investor View: Valuation appears stretched at current levels. New investors should exercise caution and wait for better entry points.

Suitable for investors seeking PSU bank exposure with moderate risk tolerance and long-term horizon.

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making investment decisions.