UCO Bank gets major relief as GST demand slashed after appeal

May 5, 2026

UCO Bank secures significant relief as GST demand is cut to ₹4.86 crore from ₹1,473 crore after an appellate ruling, easing liabilities and improving financial visibility.

UCO Bank has secured a major reprieve in a tax dispute, with a substantial reduction in its Goods and Services Tax (GST) liability following an appellate ruling.

In a regulatory filing, the bank said the Commissioner of GST & Central Excise (Appeals-I), Mumbai, has disposed of its appeal against an earlier demand order passed by the Additional Commissioner, CGST, Mumbai South.
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The order, dated April 24, 2026 and received on May 4, has significantly reduced the GST demand to ₹4.86 crore from ₹1,473.48 crore, along with applicable interest and penalties under the CGST Act, 2017.

The bank noted that it is currently evaluating the order and will take necessary steps as required.

The sharp reduction in tax liability offers considerable relief, materially lowering contingent risks on the balance sheet and improving financial clarity.

Shares of UCO Bank closed at ₹26.51 on the NSE ahead of the announcement.

Operationally, the lender has reported a mixed performance in recent quarters. For Q4FY26, net profit rose 25.4% year-on-year to ₹801.2 crore, while net interest income (NII) declined 3.1% to ₹2,614.3 crore due to a high base effect.

Earlier, managing director and CEO Ashwani Kumar said the bank remains confident of sustaining margins despite a challenging rate environment. It has guided for net interest margins (NIMs) of 2.8–2.9%, with an exit level above 3% in FY27, while expecting normalised NII growth in the high single digits.

Headquartered in Kolkata, UCO Bank has a market capitalisation of around ₹33,317 crore, with its shares declining nearly 14% over the past year.

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