Public sector UCO Bank on Thursday reported a 27 per cent rise in net profit to ₹786 crore for the second quarter ended September 30.

The Kolkata-based lender earned a net profit of ₹620 crore in the same period last fiscal year.

Total income increased to ₹8,170 crore in the second quarter from ₹7,421 crore a year ago, UCO Bank said in a regulatory filing.

Interest income improved to ₹7,286 crore in the September quarter of FY27 from ₹6,537 crore in the year-ago period.

Operating profit also increased to ₹1,872 crore against ₹1,613 crore in the same quarter a year ago.

On the asset quality front, the bank's gross non-performing assets (NPAs) moderated to 1.96 per cent of gross advances at the end of September 2026 compared to 2.56 per cent a year ago.

Net NPAs or bad loans came down to 0.18 per cent at the end of September 2026 compared to 0.43 per cent at the end of September 2025.

However, provisioning against bad loans rose marginally to ₹444 crore during the quarter against ₹405 crore in the July-September period of the last fiscal year.

The Provision Coverage Ratio (PCR) improved to 98.36 per cent as of September 30, 2026 against 96.99 per cent at the end of the second quarter of the last financial year.

The Capital to Risk-Weighted Assets Ratio (CRAR) rose to 18.85 per cent from 17.89 per cent at the end of the second quarter of the previous financial year.