Kolkata, May 1 (PTI) Aiming at a disciplined and sustainable growth path, UCO Bank has set a credit growth target of 12-14 per cent for FY26, with continued focus on the retail, agriculture, and MSME (RAM) segments that comprise 62 per cent of its loan book.

The lender will also pursue selective corporate lending opportunities, focusing on bankable proposals with attractive pricing and yields that meet its internal benchmarks, a top official said.

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UCO Bank reported a strong 17.7 per cent credit growth in FY25, surpassing both its own guidance and the industry average.

"For FY26, we have set a credit growth target of 12-14 per cent. This strategy ensures we optimise returns while capitalising on lending opportunities, maintaining a disciplined and sustainable growth path. But given the conducive environment and emerging opportunities, the bank may achieve similar growth achieved in the current fiscal," Managing Director and CEO Ashwani Kumar told analysts in a concall.

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"The RAM segments, which account for 62 per cent of our portfolio, will continue to drive growth, supported by India's strong domestic consumption and economic resilience. In corporate lending, which grew at 12 per cent last year, we will pursue opportunities selectively, focusing on bankable proposals with attractive pricing and yields that meet our expectations," he said.

The lender will pursue corporate proposals with favourable pricing, balancing growth across RAM and corporate segments, Kumar said.

"The bank has a Rs 10,000 crore pipeline of sanctioned but undisbursed loans, poised for deployment over the next year, particularly in manufacturing and trade finance," he said, adding that all lending decisions will prioritise healthy margins.

Kumar noted that the personal loan portfolio grew 46 per cent year-on-year, albeit on a smaller base of Rs 800 crore, targeting existing customers such as salary and pension account holders through data-driven analytics.

While corporate lending posted a modest 12 per cent growth in FY25, Kumar said the bank would maintain a cautious stance in FY26 due to global geopolitical uncertainties and potential softening in demand. However, he remains optimistic.

"India's economy is outperforming globally, and our RAM segment will sustain momentum. We're also exploring corporate opportunities where pricing aligns with our expectations," he said.

Deposit growth is projected at 10-12 per cent in FY26, following an 11.56 per cent increase in FY25.

With anticipated rate cuts by the RBI, UCO Bank expects treasury gains in FY26, particularly in its Fair Value Through Profit & Loss (FVTPL) portfolio.

Looking ahead, the bank is positioning itself to benefit from India's growing role in global supply chains.

"Our teams are engaging with customers to develop tailored offerings in manufacturing and trade finance, tapping into opportunities as India attracts global manufacturers," the bank CEO added.

Digital transformation remains central to UCO Bank's strategy. The rollout of tap banking across all 3,000-plus branches has enabled digital onboarding of savings and current accounts, reducing footfall dependency.

The bank now aims to integrate transaction capabilities into its tap banking platform and launch omnichannel experiences.

Current initiatives will help push our CASA ratio beyond 40 per cent, from 37.91 per cent in FY25, supporting sustainable credit growth, Kumar stated.

UCO Bank plans to explore new partnerships based on process efficiency and recovery performance, not just ratings.

"We're open to collaborations aligned with our loan policy to fuel credit expansion," Kumar said.

The gold loan portfolio, valued at Rs 10,500 crore, remained stable and compliant with RBI guidelines, with no significant delinquencies.

"Our focus on digital innovation, disciplined lending, and trade-driven opportunities positions us to sustain strong credit growth while navigating economic challenges," Kumar added.

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