Assignment of Credit Rating by S&P Global Ratings

UCO BANK स(cid:7013)मान आपके िव(cid:7393)ास का Honours Your Trust HO/Finance/Share/136/2026-27 Date: 04.11.2026 BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers “Exchange Plaza” Dalal Street,Fort, Plot no. C/1, G Block Mumbai – 400 001 Bandra-Kurla Complex, Bandra (E) BSE Scrip Code: 532505 Mumbai – 400 051 NSE Scrip Symbol: UCOBANK Madam/ Dear Sir Sub: Assignment of Credit Ratings by S&P Global Ratings Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we inform that S&P Global Ratings has assigned the following issuer credit ratings to the Bank: Particulars Rating Long-Term Issuer Credit Rating BBB Short-Term Issuer Credit Rating A-2 Outlook on Long-Term Rating Stable The rating rationale issued by S&P Global Ratings dated 04.11.2026, is enclosed herewith for information. The above is submitted for your information and record. Yours sincerely, For UCO Bank (Vikash Gupta) Company Secretary UCO Bank, Finance Department, Head Office, 3rd Floor, 02, India Exchange Place, Kolkata – 700 001 Phone: 033 - 44557227, E-mail: hosgr.calcutta@uco.bank.in Follow UCO Bank on Twitter: UCOBankOfficial; Facebook: Official.UCOBank; Instagram: Official.ucobank; LinkedIn: UCO BANK; You Tube: UCO Bank Official UCO Bank Assigned 'BBB/A-2' Ratings; Outlook Stable November 4, 2026 • We believe UCO Bank has a very high likelihood of receiving support from the Indian Primary Contact government, if needed. Sue Ong • Sufficient capitalization, solid funding, and healthy liquidity will underpin the bank's credit Singapore 65-6216-1082 quality over the next two years. sue.ong • We assigned our 'BBB' long-term and 'A-2' short-term issuer credit ratings to UCO Bank. @spglobal.com • The stable outlook on the long-term rating reflects our view that the India-based bank will Secondary Contacts maintain its good capitalization and funding and liquidity profile over the next two years. Ruchika Malhotra SINGAPORE (S&P Global Ratings) Nov. 4, 2026--S&P Global Ratings today assigned its 'BBB' long- Singapore term and 'A-2' short-term issuer credit ratings to UCO Bank. The outlook on the long-term rating 65-6239-6362 ruchika.malhotra is stable. @spglobal.com Our ratings on UCO Bank reflect a very high likelihood of extraordinary support from the Shinoy Varghese government of India, if needed. The long-term rating on the bank is one notch above our Singapore assessment of its stand-alone credit profile (SACP). We believe the Indian government will 65-6597-6247 provide the bank with timely and sufficient extraordinary support in the event of financial shinoy.varghese1 distress. @spglobal.com We base our view on UCO Bank's very important role as a public sector bank in promoting financial inclusion through increased access to deposits and lending. The bank has very strong links with the government, which has majority ownership and control. The starting point for our rating is 'bbb-', the same as for any bank operating predominantly in India. UCO Bank makes about 90% of its loans in India. We expect asset quality in the Indian financial sector to remain healthy. Our opinion reflects structural improvements in operating conditions and the country's good economic prospects over the next few years. Nonetheless, some emerging strains, such as global geopolitical tensions, could pose risks. A weak monsoon could also weigh on weaker borrowers. The bank has an established franchise, particularly in eastern India. Solid deposits backed by high customer confidence, owing to its government ownership, and ample liquidity underpin its creditworthiness. Profitability and asset quality lag industry averages, tempering these strengths. We expect UCO Bank to continue improving its risk management and asset quality over the next two years. The www.standardandpoors.com November 4, 2026 1 © S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings' permission. See Terms of 3654389 Use/Disclaimer on the last page. UCO Bank Assigned 'BBB/A-2' Ratings; Outlook Stable bank's capitalization should also remain sufficient to support credit growth above the industry average. UCO Bank is a small public sector bank with a gradually growing market share. While the bank maintains a solid regional presence in eastern India, it remains a niche player in a highly fragmented banking sector. As of March 2026, it had 1%-2% market shares in loans and deposits. It ranks closely with Bank of Maharashtra but is significantly behind larger public sector peers such as State Bank of India, Bank of Baroda, and Indian Bank. Although we expect UCO Bank to gain market share by growing faster than industry averages, it will likely remain a small player over the next two years. The bank will likely expand its pan-India branch network with a higher focus on southern India for balanced growth. Drivers for credit growth will primarily be the retail, agriculture, and micro, small and midsize enterprise (MSME) segments. This is as UCO Bank continues to prioritize improved loan yields and portfolio granularity. UCO Bank will focus on secured lending in the retail segment, specifically residential mortgages and gold loans. In the corporate segment, the bank will focus on large corporations and public sector undertakings. UCO Bank will also maintain geographical diversification with a presence in Singapore, Hong Kong, and a newly established branch in Gujarat International Finance Tec-City (GIFT City). Overseas loans accounted for about 11.0% of the bank's total advances as of end-September 2026. UCO Bank will maintain sufficient capitalization to support growth. We expect the bank's risk- adjusted capital (RAC) ratio to climb above 10% as the bank raises Indian rupee 27 billion of core equity capital, as approved by the board. We believe it could raise this capital by fiscal 2028. UCO Bank's RAC ratio was 9.5% as of March 31, 2026. The bank could also maintain a common equity Tier-1 (CET1) ratio higher than that of the sector. It had a CET1 ratio of 16.4% as of end- March 2026, above the industry's 15.3%. UCO Bank intends to maintain a CET1 ratio of over 15% as part of its capital management strategy. We expect profitability to improve over the next two years to about 1.2% by end-fiscal 2029 (year- end March 31), narrowing the gap with domestic peers. Stable net interest margins (NIMs), strong loan growth, and an improved cost-to-income ratio will support this. UCO Bank's reported return on assets was 0.79% as of end-March 2026. That remained below the system average of about 1.3%. The bank's NIM was also lower than peers as it keeps lending rates lower to gain market share in a highly competitive environment. In addition, most of UCO Bank's corporate loans are made to public sector entities and large corporates, where margins are thinner. We expect UCO Bank's credit costs to remain below the industry average due to recoveries in its loan book. Still, credit costs could rise to 0.4%-0.5% of customer loans in fiscal 2028-2029, from 0.3% in fiscal 2026. The uptick reflects an increase in steady-state credit costs under the Reserve Bank of India's expected credit loss framework and tapering recoveries from the bank's written-off accounts. Above-average loan growth and some loan concentration expose UCO Bank to asset quality risk. The bank's high loan growth in the past five years has resulted in an unseasoned loan book, particularly in its retail, agriculture and MSME loan portfolio. www.standardandpoors.com November 4, 2026 2 © S&P Global Ratings. All rights reserved. No reprint or dissemination without S&P Global Ratings' permission. See Terms of 3654389 Use/Disclaimer on the last page. UCO Bank Assigned 'BBB/A-2' Ratings; Outlook Stable The bank's improving risk management should limit any significant weakening of asset quality, although external uncertainties remain a risk, particularly on its agriculture and MSME portfolio. [Showing first 8,000 characters — download PDF for full document]