Assignment of rating by Fitch Ratings

HO/Finance/Share/90/2026-27 Date: 27.07.2026 National Stock Exchange of India Ltd. BSE Limited “Exchange Plaza” Phiroze Jeejeebhoy Towers Plot no. C/1, G Block Dalal Street,Fort, Bandra-Kurla Complex, Bandra (E) Mumbai – 400 001 Mumbai – 400 051 BSE Scrip Code: 532505 NSE Scrip Symbol: UCOBANK Madam/ Dear Sir, Sub : Assignment of Ratings by Fitch Ratings Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that Fitch Ratings has assigned the following ratings to UCO Bank: Particulars Rating Rating Action Long-Term Issuer Default Rating (IDR) BBB- (Stable Outlook) New Short-Term Issuer Default Rating (IDR) F3 New Government Support Rating (GSR) bbb- New Viability Rating (VR) bb New Long-Term Issuer Default Rating (xgs) BB(xgs) New Short-Term Issuer Default Rating (xgs) B(xgs) New The rating action commentary is enclosed for reference. This is for the information and dissemination. 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 7/27/26, 9:43 PM Fitch Assigns First-Time 'BBB-' IDR to India's UCO Bank; Outlook Stable  Sign In | Register RATING ACTION COMMENTARY Fitch Assigns First-Time 'BBB- ' IDR to India's UCO Bank; Outlook Stable Mon 27 Jul, 2026 - 6:44 am ET Fitch Ratings - Singapore - 27 Jul 2026: Fitch Ratings has assigned UCO Bank (UCO) a Long-Term Issuer Default Rating (IDR) of 'BBB- ' with a Stable Outlook, and Short-Term IDR of 'F3'. Fitch has also assigned UCO a Government Support Rating (GSR) of 'bbb- ' and a Viability Rating (VR) of 'bb'. A full list of rating actions is below. KEY RATING DRIVERS Government Support-Driven IDR: UCO's IDR and GSR are equalised with India's sovereign rating (BBB-/Stable), reflecting Fitch's view of a high probability of extraordinary state support for the bank, if required. This takes into consideration the state's 91% ownership of UCO, our view of very limited politically-acceptable scope to bail in senior creditors of a government-owned bank given the risk of contagion, and the government's record of supporting state-owned banks. The Stable Outlook on the IDR mirrors that on the sovereign IDR. Improving Operating Environment Despite Risks: We have a positive outlook on Indian banks' operating environment (OE) score of 'bb+'. The outlook reflects our expectations of reduced sector risks due to enhanced regulations and supervision by the Reserve Bank of India. An upward revision to the score is possible if Fitch assesses the sector's strengthened regulatory regime and improved financial performance as sustainable, with several key financial metrics close to those observed when the score was last at 'bbb- ' (prior to 2019). The outlook is also supported by India's large and diversified economy and its strong medium-term growth potential - consistent with Fitch's forecast of GDP growth above 6% through the financial years ending March 2027 (FY27) and March 2028. Downside risks remain, including the economic impact of a sustained rise in energy prices from an extended Middle-East conflict or sustained higher-than-expected inflation due to a weak monsoon, but we believe they are manageable. https://www.fitchratings.com/research/banks/fitch-assigns-first-time-bbb-idr-to-india-uco-bank-outlook-stable-27-07-2026 1/10 7/27/26, 9:43 PM Fitch Assigns First-Time 'BBB-' IDR to India's UCO Bank; Outlook Stable Stronger Performance Supports VR: UCO's VR is supported by structural improvement in its financial profile over the past few years, including asset quality, capitalisation and profitability, which we expect to be sustained in an improving OE. We also have positive outlooks on most rating factor scores, which reflect the potential for higher scores if the improvements are sustained as expected. These positive outlooks also mirror the outlook on the OE and reflect the potential for further improvements if the OE score is revised upwards. Diversified Franchise: UCO's large network of about 3,400 branches supports its growth in granular retail loans. Retail, agriculture and MSME (RAM) loans accounted for 58% of total loans at end-FY26, similar to most state bank peers, although UCO's business profile score of 'bb' also reflects its smaller national market share than most state bank peers, with 1.2% of system loans and deposits. UCO has a more prominent presence in eastern and northern Indian states, and its close state linkages support its business and profit generation. Large Growth Appetite in Granular Loans: UCO's risk profile score of 'bb- ' reflects high loan growth of 19.5% in FY26 (FY25: 17.8%, FY24: 15.6%), albeit from a low base. Management expects loan growth to normalise to 12%-14% in FY27, but we expect it to exceed this range. The RAM segment drove loan growth in recent years, with high growth in non-mortgage loans, but the bank's overall focus on secured loans mitigates risks. UCO tightened underwriting and risk controls following regulatory measures and asset quality pressures in the previous cycle, like peers. This has resulted in lower fresh impaired loans and a decline in its exposure to riskier corporate loans. Nevertheless, UCO's above-average loan growth and rapid portfolio expansion are risks to the VR. Steady Asset Quality: The asset-quality score of 'bb- ' reflects Fitch's expectation that UCO's impaired-loan ratio will remain around 2% until FY28. The ratio decreased to 2.2% in FY26 from 2.7% in FY25, due to lower fresh bad loans, although strong loan growth and write offs also contributed. The score also reflects the bank's above-average loan loss coverage of 88% (121% including other voluntary provisions by our estimates). Sustained Core Profitability: We expect UCO's core profitability to remain intact till FY28. The bank's operating profit/risk-weighted asset (OP/RWA) ratio is likely to decline to 2.2% in FY27 from 2.6% in FY26 due to frontloading of floating provision to meet increased provisioning under expected credit loss provisioning in FY28. We expect OP/RWA to recover to 2.5% in FY28, supported by broadly stable net interest margins, robust loan growth, improving operating leverage, and manageable credit costs, despite lower treasury and non-interest income. https://www.fitchratings.com/research/banks/fitch-assigns-first-time-bbb-idr-to-india-uco-bank-outlook-stable-27-07-2026 2/10 7/27/26, 9:43 PM Fitch Assigns First-Time 'BBB-' IDR to India's UCO Bank; Outlook Stable Capital Buffers Improved: UCO's common equity Tier 1 (CET1) ratio rose to 16.4% in FY26 from 16% in FY25 from improved internal capital generation and remains one of the highest among Indian state banks. We expect the bank's CET1 ratio to fall over the next two years due to loan growth and dividend payments, but it should remain above 15% until FY28. Stable Low-Cost Funding: UCO's funding and liquidity score of 'bbb- ' is a strength for the VR, similar to state-owned bank peers. This reflects high depositor confidence from its state linkages. Deposits were nearly 88% of total non-equity funding and low-cost deposits were 36% of total deposits at FYE26. The loan/deposit ratio rose to 85.2% in FY26 from 79.1% in FY25, but it remains comparable with the peer average of about 83%. Its liquidity coverage ratio of 114% and net stable funding ratio of 127% in FY26 reflect sufficient funding and liquidity surpluses underpinned by its investments in government securities and reliance on stable funding. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The Long-Term IDR and GSR could be downgraded if we believe the sovereign's support for UCO has weakened, which would be reflect [Showing first 8,000 characters — download PDF for full document]