Today we exploring, UCO Bank share price targets for 2024, 2025, 2030 and more. In this post, we’ll delve into the fundamentals driving UCO Bank’s potential trajectory over the next three decades, providing insights into what investors might expect in 2024, 2025, 2030, 2040, and 2050.
About UCO Bank Ltd.
Formerly known as United Commercial Bank, UCO Bank is an Indian public sector bank and financial services statutory body headquartered in Kolkata. It ranks as the 10th largest public sector bank in India by total assets and held the 1948th position in the Forbes Global 2000 list in 2018.
Additionally, it secured the 80th spot on the Fortune India 500 list in 2020. In the fiscal year 2022–23, UCO Bank recorded a total business of ₹4.10 lakh crore, with a market capitalization of ₹48,947.69 crore in 2023.
UCO Bank stands out as the sole government-owned bank in East India, with its headquarters located at BTM Sarani, Kolkata. As of March 30, 2023, the bank boasted over 4,000 service units and 44 zonal offices across India.
Furthermore, it operates two overseas branches in Singapore and Hong Kong.
Distinguished for facilitating the Rupee-Rial and Rupee-Ruble trade mechanisms between India and Iran, as well as Russia respectively, UCO Bank holds a special position in the banking sector.
Notably, it made history by establishing the first-ever “lockless” branch in Shani Shinganapur, Maharashtra, showcasing respect for the local belief and faith in Lord Shani.
UCO Bank Ltd. Company Profile
| Company Name | UCO Bank Ltd. |
|---|---|
| Formerly | United Commercial Bank |
| Company type | Public |
| Traded as | NSE: UCOBANK BSE: 532505 |
| ISIN | INE691A01018 |
| Industry | Banking, Financial services |
| Founded | 6 January 1943; 81 years ago |
| Founder | G. D. Birla |
| Headquarters | UCO Bank Head Office, BTM Sarani, Kolkata, West Bengal, India |
| Number of locations | India: 3,205 Branches 2,564 ATMs International: 2 Branches in 2 countries |
| Area served | Worldwide |
| Key people | Ashwani Kumar (MD & CEO) |
| Products | Consumer banking Corporate banking Finance and insurance Investment banking Mortgage loans Wealth management |
| Revenue | ₹20,158.97 crore (US$2.5 billion)(2023) |
| Operating income | ₹4,340.67 crore (US$540 million) (2023) |
| Net income | ₹1,862.34 crore (US$230 million) (2023) |
| Total assets | ₹300,862.98 crore (US$38 billion) (2023) |
| Total equity | ₹25,603.70 crore (US$3.2 billion) (2023) |
| Number of employees | 21,698 (March 2023) |
| Parent | Ministry of Finance (Government of India (95.39%)) |
| Subsidiaries | Paschim Banga Gramin Bank |
| Capital ratio | 16.51% (2023) |
| Website | www.ucobank.com |
Predicting the future price of any stock is an inherently uncertain endeavor, and UCO Bank is no exception. However, by analyzing the company’s fundamentals, technical indicators, and past performance, we can create a more informed picture of its potential trajectory.
Breakdown for UCO Bank, with targets extending from 2024 to 2050:
Fundamentals:
- Rising advances: 26.95% YoY growth indicates loan demand.
- Good CASA ratio: 36.79% reflects low-cost deposits.
- Efficient asset management: Low Gross NPA (4.78%) and Net NPA (1.29%).
- Good Capital Adequacy Ratio: 16.51% indicates financial stability.
Technical Indicators:
- Current Trend: UCO Bank is in a consolidation phase after a bullish run in 2023.
- Support: ₹55
- Resistance: ₹65
- Moving Averages: 50-day and 200-day MA are flat, indicating indecisiveness.
Past Performance:
- UCO Bank’s share price has grown by 40% in the past year.
- However, it has underperformed the Nifty Bank index over the past 3 and 5 years.
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If the market stays stable and UCO Bank improves its income and profitability (think earning more money!), the share price could climb to ₹75. But if it struggles with these aspects, it might stay around ₹65.
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If the Indian banking sector booms and UCO Bank keeps improving its performance, the price could reach ₹110. But remember, there are still roadblocks like addressing low income growth.
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If the Indian economy thrives and UCO Bank becomes a shining star in the banking world (think even better financials and resolving its challenges), the price could soar to ₹350–500. But competition is fierce, so staying ahead won’t be easy.
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Imagine a booming India with flying cars (okay, maybe not that far) and a thriving banking sector. If UCO Bank keeps pace with advancements, embraces new technologies, and remains financially strong, its share price could reach some seriously impressive heights – think ₹1500 or even higher!
But remember, competition will be fierce, and unforeseen events could throw wrenches in the plan.
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By 2050, the Indian economy could be a global powerhouse, and the banking landscape might be unrecognizable. If UCO Bank continues to innovate, adapt, and become a leader in this brave new world, its share price could be mind-blowing, potentially exceeding ₹5,000!
But of course, this is pure speculation. Predicting the future this far out is like trying to guess the winning lottery numbers – anything is possible, but the odds are slim.
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UCO Bank Ltd. Fundamental Analysis
| Company Fundamentals | Value |
|---|---|
| Market Cap | ₹ 70,659.71 Cr. |
| CASA % | 36.79 |
| No. of Shares | 1,195.60 Cr. |
| P/E | 41.34 |
| P/B | 2.92 |
| Face Value | ₹ 10 |
| Div. Yield | 0 % |
| Book Value (TTM) | ₹ 20.22 |
| Net Interest Income | ₹ 7,343.13 Cr. |
| Cost to Income % | 55.94 |
| Promoter Holding | 95.39 % |
| EPS (TTM) | ₹ 1.43 |
| CAR % | 16.51 |
| ROE | 8.50 % |
| ROCE | 9.11 % |
| Profit Growth | 100.30 % |
UCO Bank Ltd. Profit & Loss – Last 3 Years
| Profit & Loss | MAR 2021 (Cr.) | MAR 2022 (Cr.) | MAR 2023 (Cr.) |
|---|---|---|---|
| Interest Earned | 14,446.15 | 14,981.34 | 17,650.52 |
| Other Income | 3,424.17 | 3,100.81 | 2,508.46 |
| Interest Expended | 8,966.45 | 8,508.39 | 10,307.39 |
| Operating Expenses | 4,754.81 | 4,776.32 | 5,510.92 |
| Total Provisions | 4,224.55 | 3,047.07 | 1,435.56 |
| Profit Before Tax | -75.49 | 1,750.36 | 2,905.11 |
| Taxes | -242.52 | 820.60 | 1,042.77 |
| Net Profit | 167.03 | 929.76 | 1,862.34 |
| Adjusted EPS (Rs.) | 0.17 | 0.78 | 1.56 |
UCO Bank Ltd. Balance Sheet – Last 3 Years
| Details | MAR 2021 (Cr.) | MAR 2022 (Cr.) | MAR 2023 (Cr.) |
|---|---|---|---|
| Equity and Liabilities | |||
| Share Capital | 9,918.34 | 11,955.96 | 11,955.96 |
| Total Reserves | 10,088.07 | 11,637.54 | 13,808.55 |
| Deposits | 2,05,919.39 | 2,24,072.90 | 2,49,337.74 |
| Borrowings | 15,382.63 | 13,508.14 | 20,501.08 |
| Other Liabilities | 9,427.67 | 6,609.48 | 5,259.66 |
| Total Liabilities | 2,53,336.11 | 2,67,784.02 | 3,00,862.99 |
| Assets | |||
| Balance with RBI | 9,445.41 | 10,287.55 | 10,300.01 |
| Balance with Banks | 14,154.83 | 15,860.44 | 18,428.09 |
| Investments | 93,782.95 | 96,873.80 | 95,169.35 |
| Advances | 1,11,354.54 | 1,22,784.41 | 1,55,870.18 |
| Net Block | 3,151.20 | 3,287.09 | 3,444.50 |
| Other Assets | 21,380.14 | 18,642.90 | 17,585.85 |
| Total Assets | 2,53,336.11 | 2,67,784.02 | 3,00,862.99 |
UCO Bank Ltd. Quick Analysis Report: Is UCO Bank a Compelling Investment?
The Indian banking sector is experiencing a rapid surge, propelled by infrastructure spending, favorable government policies, increasing disposable income, and heightened consumerism, along with easier access to credit.
While the sector is witnessing significant growth nationwide, the question remains: Is it the opportune moment to invest in banking stocks? Let’s delve into a comprehensive analysis of UCO Bank’s performance to determine its attractiveness as an investment option.
For banking entities like UCO Bank, the primary revenue source stems from interest earned on loans extended to individuals and corporations. UCO Bank recorded a revenue of Rs 17,650.52 Cr. in the latest fiscal year, exhibiting a lackluster revenue growth of 5.26% over the past three years.
In terms of advances, UCO Bank reported a notable year-on-year rise of 26.95%. However, over the span of three years, its advance growth stands at a modest 15.50%.
Currently, UCO Bank boasts a CASA ratio of 36.79%, with an overall liability cost standing at 3.82%. Total deposits from these accounts amounted to Rs 2,49,337.74 Cr.
Despite these positive aspects, UCO Bank presents a poor track record in terms of Return on Assets (ROA), resting at 0.66%.
The bank appears to efficiently manage its asset portfolio, with Gross Non-Performing Assets (NPA) and Net NPA standing at 4.78% and 1.29% respectively in the latest financial year.
However, a concerning aspect arises from the provision coverage ratio, indicating a year-on-year decrease of -52.89% in provisions and contingencies, signifying a decline from the previous year.
Non-interest income, or other incomes, is a crucial aspect for banks as it provides a steady source of income with minimal additional risk. Unfortunately, UCO Bank witnessed a decrease in other income, currently standing at Rs 2,508.46 Cr.
On a positive note, UCO Bank maintains a commendable Capital Adequacy Ratio of 16.51%.
Assessing the bank’s valuation, the Price-to-Book (P/B) ratio is a pertinent metric. Currently, UCO Bank trades at a P/B of 2.81, with a historical average PB of 0.80.
Considering the aforementioned factors, including its current share price of Rs 57.75, investors may utilize valuation calculators to determine whether UCO Bank’s share price reflects undervaluation or overvaluation.
UCO Back Ltd. Strenghts & Weakness
Strengths
- A significant portion of deposits, 36.79%, comes from Current Account and Savings Account (CASA).
- Maintains a healthy Capital Adequacy Ratio of 16.51%.
- Demonstrated strong Profit growth of 40.34% over the last 3 years.
Weakness
- Historically low Return on Assets (ROA), averaging 0.36% over 3 years.
- Experienced negative year-on-year growth (-2.63%) in CASA, indicating a need for improvement.
- Low Return on Equity (ROE) at 4.78% over the past 3 years.
- High Non-Performing Assets (NPA) with an average of 2.64% over 3 years.
- Struggles with a high Cost-to-Income ratio of 55.94%.
- Poor Income growth of only 5.26% over the past 3 years.
Does UCO Bank Ltd. pays Dividend?
UCO Bank Ltd. has historically paid dividends, but not recently.
Here’s what I found:
- Last dividend declared: ₹2 per share on May 12, 2015.
- Current dividend yield: 0% (as of February 7, 2024).
- Dividend policy: UCO Bank follows the Reserve Bank of India (RBI) guidelines for dividend distribution. This allows them to declare dividends without prior approval if they meet specific criteria, including capital adequacy, net NPA levels, and compliance with regulations.
FAQs
As per analysis, UCO Bank Share price might reach ₹500 at 2029 to 2031 (approx).
As per Expert Opnions, UCO Bank Share Price hit ₹1000 at ₹2035 to ₹2040. but, depends on market conditions.
The UCO Bank share price target for 2025 is ₹100-150 (estimated).
The UCO Bank share price target for 2030 is ₹300-550 (estimated).
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