UCO Bank is a public sector bank established in 1943 and headquartered in Kolkata. It offers a full range of banking services across retail, corporate, treasury, and international segments. With over 3,000 branches nationwide, UCO Bank has made steady progress in recent years—reducing NPAs, strengthening capital buffers, and returning to consistent profitability. The bank reported strong YoY profit growth in FY2025, supported by improved asset quality and disciplined lending. This article provides a realistic, data-backed outlook on the UCO Bank share price target 2026–2030, based on verified financials, sector dynamics, and fundamental analysis.
UCO Bank: Company Overview
- Founded: 1943
- Managing Director: Shri Ashwani Kumar
- NSE Symbol: UCOBANK
- Business Segments: Retail Banking, Corporate/Wholesale Banking, Treasury Operations
- Market Position: Mid-sized public sector bank with presence across India
UCO Bank has focused on digital transformation, cost rationalization, and credit recovery to improve operational efficiency. Its capital adequacy remains robust, providing room for future loan growth without immediate dilution.
UCO Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹29.42 |
| Market Capitalization | ₹36,891.38 Cr |
| No. of Shares Outstanding | 1,253.96 Cr |
| 52-Week High / Low | ₹46.50 / ₹26.80 |
| P/E Ratio (TTM) | 14.65 |
| P/B Ratio | 1.25 |
| EPS (TTM) | ₹2.01 |
| Book Value (TTM) | ₹23.46 |
| ROE | 9.35% |
| ROCE | 11.04% |
| Dividend Yield | 1.32% |
| Face Value | ₹10 |
| Net Interest Income | ₹9,630.08 Cr |
| Cost-to-Income Ratio | 56.99% |
| Capital Adequacy Ratio (CAR) | 18.45% |
| Profit Growth (YoY) | 47.85% |
| CASA % | 35.83% |
UCO Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹31 – ₹36 |
| 2027 | ₹34 – ₹40 |
| 2028 | ₹37 – ₹44 |
| 2029 | ₹40 – ₹48 |
| 2030 | ₹43 – ₹52 |
UCO Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹31 | ₹36 |
UCO Bank posted 47.85% YoY profit growth in FY2025, driven by lower provisioning and stable interest income. Trading at a P/E of 14.65 and P/B of 1.25—with ROE of 9.35%—the stock is fairly valued relative to PSU banking peers. A healthy CAR (18.45%) and an improving CASA ratio (35.83%) support sustainable operations. Given modest earnings scale (EPS: ₹2.01), near-term upside is limited but stable. A 2026 target range of ₹31–₹36 assumes continued macro stability and no fresh slippages.
UCO Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹34 | ₹40 |
If UCO Bank sustains its current trajectory and gradually improves its cost-to-income ratio (currently 56.99%), profitability could strengthen further. The bank’s dividend payout (~20% in recent years) adds modest income appeal. Assuming EPS grows to ₹2.20–₹2.40 by FY27 and P/E stabilizes around 15x, the 2027 target range of ₹34–₹40 is reasonable.
UCO Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹37 | ₹44 |
By 2028, benefits from past balance sheet cleanup and digital initiatives should reflect more clearly in margins. However, UCO Bank’s high promoter holding (90.95%) limits free float and institutional liquidity. A P/E of 15–16x on projected EPS of ₹2.40–₹2.70 supports the ₹37–₹44 band, assuming ROE holds above 9%.
UCO Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹40 | ₹48 |
Long-term credit demand in semi-urban and rural India remains supportive. Yet, competition from larger PSUs like SBI and private banks may cap pricing power. If asset quality remains stable and net interest income grows at 8–10% CAGR, EPS could reach ₹2.60–₹2.90 by FY29. At a P/E of 15.5–16.5x, the 2029 target is ₹40–₹48.
UCO Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹43 | ₹52 |
Over a five-year horizon, UCO Bank offers moderate growth with defensive capital strength. While it lacks the scale of top-tier PSUs, its consistent return to profitability makes it a viable satellite holding. A terminal P/E of 16–18x on FY30 EPS (~₹2.70–₹2.90) justifies the ₹43–₹52 range. Upside remains limited by structural inefficiencies, but downside risk is mitigated by strong capital buffers.
UCO Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (Government of India) | 90.95% |
| Domestic Institutional Investors (DII) | 4.42% |
| Foreign Institutional Investors (FII) | 0.14% |
| Public & Others | 4.49% |
The extremely high promoter stake reflects full government control—a typical feature of legacy PSU banks. Low institutional ownership indicates limited analyst coverage and trading liquidity.
UCO Bank: Strengths vs Risks
Strengths:
- Strong 5-year profit CAGR (24.6%) and return to consistent ROE (9.35% in FY25)
- Healthy capital position (CAR: 18.45%), well above RBI’s 11.5% requirement
- Regular dividend payer with ~20% payout since FY2023
- Contingent liabilities (₹1.36 lakh Cr) are manageable relative to the balance sheet size
Risks:
- High cost-to-income ratio (56.99%) limits margin expansion
- Very low free float (public holding: 4.49%) affects liquidity and price discovery
- Vulnerable to interest rate cycles and regional economic slowdowns
- Limited brand recognition compared to SBI or PNB
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 3–5+ years |
| Volatility | Higher than large-cap PSU peers due to low float |
| Dividend/Income Potential | Yes (1.32% yield + consistent payouts) |
| Best For | Conservative investors seeking small PSU banking exposure with income |
FAQs
Is it good to buy UCO Bank shares?
UCO Bank is suitable as a small, tactical allocation for long-term portfolios seeking PSU banking exposure with dividends. Its fundamentals have improved, but high promoter holding and operational inefficiencies limit aggressive upside.
Which is better, SBI or UCO?
SBI is significantly larger, more liquid, and offers higher ROE (~16%) with consistent dividends. UCO Bank is smaller, less efficient, and trades at a higher P/E despite lower returns. SBI is generally preferred for core banking exposure; UCO suits only niche, high-conviction positio
Are UCO and UCO Bank the same?
Yes. “UCO” is the common abbreviation for United Commercial Bank, officially known as UCO Bank.
Is UCO Bank a big bank?
No. With a market cap of ~₹36,891 Cr, UCO Bank is classified as a mid-cap stock under SEBI guidelines. Among PSU banks, it ranks below SBI, PNB, BoB, Canara, and Indian Bank in terms of total business and market presence.
Final Verdict
UCO Bank has turned a corner after years of stress, now delivering consistent profits and maintaining strong capital buffers. While it lacks the scale and efficiency of top-tier PSU banks, its improving fundamentals and dividend policy offer modest appeal for conservative investors.
Our UCO Bank share price target 2026–2030 (₹31 to ₹52) reflects cautious optimism—rooted in historical performance, sector trends, and realistic valuation expansion. Investors should monitor quarterly asset quality, cost ratios, and any shift in government policy before increasing exposure.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – UCO Bank Consolidated Page (FY2025 + TTM)
- Groww.in – UCO Bank Stock Profile (Market Cap, P/E, Dividend Yield)
- UCO Bank Investor Presentation (Q2 FY26, Oct 2025)
- BSE India – Annual Report FY2025
- RBI Guidelines on Capital Adequacy and NPA Classification
