UCO Bank Shares Fell ~3%: Set QIP Floor Price at ₹36.07 Per Share

On March 25, 2025, UCO Bank shares dropped nearly 3%, reaching a day low of ₹37.11. The fall in UCO Bank shares came despite the launch of its qualified institutional placement (QIP), with a floor price set at ₹36.07 per share, as revealed to exchanges on Monday, March 24. This move follows a resolution passed on June 18, granting the bank the option to offer a discount of up to 5% on the floor price if needed.

The QIP is expected to raise around ₹2,000 crore, primarily aimed at reducing the government’s stake in the bank by 3%. At present, the government holds a 95.39% share in UCO Bank.

UCO Bank Q3FY25 Performance

As of December 31, 2024, the total business of the Bank reached ₹4,88,911 crore, reflecting a year-on-year growth of 12.28%. Gross advances saw a notable increase of 16.44%, rising to ₹2,08,655 crore, while total deposits grew by 9.36%, reaching ₹2,80,256 crore. In terms of profitability, the net profit for the quarter ending December 31, 2024, stood at ₹639 crore, marking a 27.04% year-on-year growth compared to ₹503 crore in the same period the previous year.

Operating profit for the quarter also showed significant growth, rising 41.73% year-on-year to reach ₹1,586 crore. The bank’s advances in the Retail, Agriculture, and MSME (RAM) sectors increased by 22.01% year-on-year to ₹1,14,350 crore, driven by a 31.01% growth in retail advances, 20.04% growth in agriculture advances, and a 12.75% increase in MSME advances.

Additionally, the bank made progress in reducing its Non-Performing Assets (NPA), with gross NPA declining by 94 basis points year-on-year to 2.91%, while net NPA improved by 35 basis points, reaching 0.63% as of December 31, 2024.

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