India Ratings & Research (Ind-Ra) has upgraded UCO Bank's (UCO) basel II tier I and upper tier II instruments to 'A+' from 'A-'. The agency has also affirmed the bank's long-term issuer rating at 'AA'. The outlook is stable.

The rating upgrade of the bank's perpetual tier I and upper tier II debt reflects its improved standalone credit profile due to a reduction in loan concentration and increased profitability, with calibrated growth and better funding profile resulting in reduced asset liability mismatch (ALM) gap.

Shares of the bank declined Rs 0.75, or 0.86%, to trade at Rs 86.10. The total volume of shares traded was 224,312 at the BSE (1.32 p.m., Friday).