City Union Bank
Asset quality improves: The bank has exhibited sharp improvement in asset quality in Q2FY2026.
The fresh slippages of loans declined to Rs 157 crore in Q2FY2026 compared with 196 crore in previous quarter and Rs 176 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 139.2 crore, upgradations at Rs 111.4 crore and the write-off of loans was at Rs 129.7 crore in Q2FY2026. The standard restructured loan book of the bank stood at Rs 498 crore end September 2025 compared to Rs 488 crore a quarter ago. Provision coverage ratio improved to 82.00% at end September 2025 compared to 79.00% a quarter ago and 75.00% a year ago. The capital adequacy ratio of the bank stood at 21.7% with Tier I ratio at 22.7% at end September 2025.| Asset Quality Indicators: City Union Bank | ||||||||
| ? | Sep-25 | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Variation | ||
| QoQ | YTD | YoY | ||||||
| Gross NPA (Rs Crore) | 1393.22 | 1616.98 | 1638.17 | 1693.04 | 1725.50 | -14 | -15 | -19 |
| Net NPA (Rs Crore) | 512.86 | 634.55 | 653.07 | 701.54 | 775.02 | -19 | -21 | -34 |
| % Gross NPA | 2.42 | 2.99 | 3.09 | 3.36 | 3.54 | -57 | -67 | -112 |
| % Net NPA | 0.90 | 1.20 | 1.25 | 1.42 | 1.62 | -30 | -35 | -72 |
| % PCR | 82.00 | 79.00 | 78.00 | 77.00 | 75.00 | 300 | 400 | 700 |
| % CRAR - Basel III | 21.68 | 23.10 | 23.75 | 22.26 | 22.98 | -142 | -207 | -130 |
| % CRAR - Tier I - Basel III | 22.70 | 22.70 | 22.70 | 21.29 | 21.98 | 0 | 0 | 72 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
Business Highlights:
Robust business growth: The business of the bank has increased 20% YoY to Rs 127047 crore end September 2025, driven by 18% surge in advances to Rs 57561 crore. Deposits rose 21% to Rs 69486 crore at end September 2025.
CASA deposits ratio rises on sequential basis: The CASA deposits of the bank increased 16% YoY to Rs 19537 crore at end September 2025. The current account deposits increased 19% to Rs 6058 crore, while saving account deposits moved up 14% to Rs 13479 crore end September 2025. The CASA ratio declined to 28.1% at end September 2025 compared to 29.4% at end September 2024, while jumped on sequential basis from 27.3% a quarter ago. The term deposits have increased 23% to Rs 49949 crore end September 2025.
Strong loan growth: Advances growth was driven by retail loans rising 38% YoY to Rs 18150 crore at end September 2025, while credit to MSME jumped 26% to Rs 23088 crore at end September 2025. On the other hand, the credit to agriculture declined 1% to Rs 9037 crore and corporate credit also dipped 10% to Rs 7286 crore end September 2025.
Investment book of the bank rose 7% YoY to Rs 17551 crore at end September 2025. The AFS book jumped 70% to Rs 4133 crore, while HTM book declined 4% to Rs 13263 crore at end September 2025. The duration of the AFS investment portfolio stood at 3.16 years end September 2025 compared with 3.65 years at end September 2024.
Margins improve: The bank has shown 4 bps YoY decline in cost of deposits to 5.71%, while yield on advances declined 15 bps YoY to 9.66% in Q2FY2026. NIM has declined 4 bps YoY, while improved 9 bps qoq to 3.63% in Q2FY2026.
Branch expansion: The bank has added 13 branches and reduced 67 ATMs in Q2FY2026, taking overall tally to 889 branches and 1709 ATM`s end September 2025.
Book value of the bank stood at Rs 134.0 per share at end September 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 126.4 per share at end September 2025.
Quarterly Performance
NII rises as NIM improves qoq: Bank has recorded 15% increase in the interest earned at Rs 1653.13 crore, while interest expenses increased 16% to Rs 986.59 crore in Q2FY2026. NII improved 14% to Rs 666.54 crore in the quarter ended September 2025.
Healthy growth in the core fee income: Bank has posted strong 29% growth in core fee income to Rs 135 crore, while the recoveries and other income rose 6% to Rs 103 crore leading to 14% jump in the overall non-interest income to Rs 259.13 crore in the quarter ended September 2025. However, the treasury income declined 13% to Rs 22 crore.
Expenses ratio rises: The operating expenses of the bank increased 20% to Rs 455.08 crore, as other expenses moved up 17% to Rs 230.72 crore, while employee expenses increased 22% to Rs 224.36 crore in Q2FY2026. Cost to income ratio increased to 49.2% in Q2FY2026 compared with 47.1% in Q2FY2025. Operating Profit increased 10% to Rs 470.59 crore.
Provisions and contingencies decline: The bank has shown 19% decline in provisions to Rs 57 crore. The loan loss provisions dipped 43% to Rs 40 crore, while standard asset provisions were at Rs 7 crore and other provisions at Rs 10 crore.
Effective tax rate was steady at 20.6% in Q2FY2026 from 20.4% in Q2FY2025. Net Profit rose by 15% YoY to Rs 328.59 crore during quarter ended September 2025.
Financial Performance H1FY2026:
Bank has posted 15% increase in net profit to Rs 634.51 crore in the half year ended September 2025 (H1FY2026). The net interest income increased 15% to Rs 1291.83 crore, while non-interest income moved up 20% to Rs 503.01 crore, pushing up net total income by 16% to Rs 1794.84 crore in H1FY2026. The operating expenses increased 17% to Rs 873.33 crore, while provision and contingencies galloped 17% to Rs 127.00 crore, allowing profit before tax to increase 15% to Rs 794.51 crore in H1FY2026. The cost-to-income ratio rose to 48.7% in H1FY2026 compared to 48.1% in H1FY2025. An effective tax rate declined to 20.1% in H1FY2026 compared to 20.6% in H1FY2025. The net profit has increased 15% to Rs 634.51 crore in H1FY2026.| City Union Bank: Results | |||||||||
| Particulars | 2509 (3) | 2409 (3) | Var % | 2509 (6) | 2409 (6) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 1653.13 | 1433.95 | 15 | 3258.46 | 2822.59 | 15 | 5834.04 | 5270.57 | 11 |
| Interest Expended | 986.59 | 851.46 | 16 | 1966.63 | 1694.93 | 16 | 3518.33 | 3147.10 | 12 |
| Net Interest Income | 666.54 | 582.49 | 14 | 1291.83 | 1127.66 | 15 | 2315.71 | 2123.47 | 9 |
| Other Income | 259.13 | 226.32 | 14 | 503.01 | 418.45 | 20 | 898.06 | 741.66 | 21 |
| Net Total Income | 925.67 | 808.81 | 14 | 1794.84 | 1546.11 | 16 | 3213.77 | 2865.13 | 12 |
| Operating Expenses | 455.08 | 380.62 | 20 | 873.33 | 744.44 | 17 | 1535.15 | 1348.39 | 14 |
| Operating Profits | 470.59 | 428.19 | 10 | 921.51 | 801.67 | 15 | 1678.62 | 1516.74 | 11 |
| Provisions & Contingencies | 57.00 | 70.00 | -19 | 127.00 | 109.00 | 17 | 262.00 | 286.00 | -8 |
| Profit Before Tax | 413.59 | 358.19 | 15 | 794.51 | 692.67 | 15 | 1416.62 | 1230.74 | 15 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 413.59 | 358.19 | 15 | 794.51 | 692.67 | 15 | 1416.62 | 1230.74 | 15 |
| Provision for tax | 85.00 | 73.00 | 16 | 160.00 | 143.00 | 12 | 293.00 | 215.00 | 36 |
| PAT | 328.59 | 285.19 | 15 | 634.51 | 549.67 | 15 | 1123.62 | 1015.74 | 11 |
| EPS*(Rs) | 17.7 | 15.4 | ? | 17.1 | 14.8 | ? | 15.2 | 13.7 | ? |
| Equity | 74.1 | 74.1 | ? | 74.1 | 74.1 | ? | 74.1 | 74.1 | ? |
| Adj BV (Rs) | 126.4 | 108.4 | ? | 126.4 | 108.4 | ? | 118.2 | 100.2 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 1, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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