Results - Analysis
Continues strong performance
City Union Bank has reported 16% growth in net profit at Rs 305.92 crore for the quarter ended June 2025 (Q1FY2026). The bank has posted healthy 15% growth in net interest income (NII), while the core fee income of the bank also improved 22% in Q1FY2026. The Net Interest Margin (NIM) of the bank was steady at 3.54% in Q1FY2026 compared to 3.54% in the corresponding quarter of previous year. On business front, the bank as has posted 18% growth in business with strong 16% surge in loan book. The asset quality of the bank continued to improve in Q1FY2026. Bank has substantially reduced the credit to deposit ratio to 82.2% at end June 2025 from 84.9% at end June 2024. However, the CASA ratio of the bank has declined to 27.3% at end June 2025 from 29.5% at end June 2024.
Asset quality improves: The bank has continued to improve asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 196 crore in Q1FY2026 compared with 260 crore in previous quarter and Rs 178 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 108.3 crore, upgradations at Rs 34.8 crore and the write-off of loans was at Rs 74.4 crore in Q1FY2026. The standard restructured loan book of the bank stood at Rs 488 crore end June 2025 compared to Rs 581 crore a quarter ago. Provision coverage ratio was steady at 79.00% at end June 2025 compared to 78.00% a quarter ago and 73.00% a year ago. The capital adequacy ratio of the bank stood at 23.1% with Tier I ratio at 22.7% at end June 2025.| Asset Quality Indicators: City Union Bank | ||||||||
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| Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation |
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| QoQ | YoY |
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| Gross NPA (Rs Crore) | 1616.98 | 1638.17 | 1693.04 | 1725.50 | 1806.45 | -1 | -10 |
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| Net NPA (Rs Crore) | 634.55 | 653.07 | 701.54 | 775.02 | 853.50 | -3 | -26 |
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| % Gross NPA | 2.99 | 3.09 | 3.36 | 3.54 | 3.88 | -10 | -89 |
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| % Net NPA | 1.20 | 1.25 | 1.42 | 1.62 | 1.87 | -5 | -67 |
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| % PCR | 79.00 | 78.00 | 77.00 | 75.00 | 73.00 | 100 | 600 |
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| % CRAR - Basel III | 23.10 | 23.75 | 22.26 | 22.98 | 23.58 | -65 | -48 |
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| % CRAR - Tier I - Basel III | 22.70 | 22.70 | 21.29 | 21.98 | 22.55 | 0 | 15 |
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| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
Business Highlights:
Strong business growth: The business of the bank has increased 18% YoY to Rs 119754 crore end June 2025, driven by 16% surge in advances to Rs 54020 crore. Deposits increased 20% to Rs 65734 crore at end June 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 11% YoY to Rs 17951 crore at end June 2025. The current account deposits increased 16% to Rs 5352 crore, while saving account deposits improved 9% to Rs 12599 crore end June 2025. The CASA ratio declined to 27.3% at end June 2025 compared to 29.5% at end June 2024, while moderated from 28.5% a quarter ago. The term deposits have increased 24% to Rs 47784 crore end June 2025.
Strong loan growth: Advances growth was driven by retail loans rising 21% YoY to Rs 15617 crore at end June 2025, while credit to agriculture increased 1% to Rs 8667 crore and MSME 24% to Rs 21665 crore at end June 2025. The corporate credit has increased 7% to Rs 8071 crore end June 2025.
Investment book of the bank increased 9% YoY to Rs 17496 crore at end June 2025. The AFS book jumped 53% to Rs 3619 crore, while HTM book declined 2% to Rs 13103 crore at end June 2025. The duration of the overall investment portfolio stood at 2.69 years end June 2025 compared with 1.46 years at end June 2024.
Margins steady: The bank has shown 23 bps YoY jump in cost of deposits to 5.95%, while yield on advances increased 22 bps YoY to 9.81% in Q1FY2026. Thus, the NIM has was flat YoY, while eased 6 bps qoq to 3.54% in Q1FY2026.
Branch expansion: The bank has added 1 branches and 40 ATMs in Q1FY2026, taking overall tally to 876 branches and 1776 ATM`s end June 2025.
Book value of the bank stood at Rs 131.9 per share at end June 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 122.7 per share at end June 2025.
Quarterly Performance
NII rises as NIM remain steady: Bank has recorded 16% increase in the interest earned at Rs 1605.33 crore, while interest expenses increased 16% to Rs 980.04 crore in Q1FY2026. NII improved 15% to Rs 625.29 crore in the quarter ended June 2025.
Healthy growth in the core fee income: Bank has posted strong 22% growth in core fee income to Rs 123 crore, while the treasury income zoomed 274% to Rs 64 crore, leading to 27% surged in the overall non-interest income to Rs 243.88 crore in the quarter ended June 2025. However, the recoveries and other income declined 23% to Rs 57 crore in Q1FY26.
Expenses ratio improves: The operating expenses of the bank increased 15% to Rs 418.25 crore, as other expenses moved up 15% to Rs 217.65 crore, while employee expenses increased 15% to Rs 200.6 crore in Q1FY2026. Cost to income ratio improved to 48.1% in Q1FY2026 compared with 49.3% in Q1FY2025, helping the Operating Profit to increase 21% to Rs 450.92 crore.
Provisions and contingencies rises: The bank has shown 79% increase in provisions to Rs 70 crore in Q1FY2026.
Effective tax rate declined to 19.7% in Q1FY2026 from 20.9% in Q1FY2025. Net Profit rose by 16% YoY to Rs 305.92 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 11% increase in net profit to Rs 1123.62 crore in the year ended March 2025 (FY2025). The net interest income increased 9% to Rs 2315.71 crore, while non-interest income moved up 21% to Rs 898.06 crore, pushing up net total income by 12% to Rs 3213.77 crore in FY2025. The operating expenses increased 14% to Rs 1535.15 crore, while provision and contingencies declined 8% to Rs 262.00 crore, allowing profit before tax to increase 15% to Rs 1416.62 crore in FY2025. The cost-to-income ratio rose to 47.8% in FY2025 compared to 47.1% in FY2024. An effective tax rate increased to 20.7% in FY2025 compared to 17.5% in FY2024. The net profit has moved up 11% to Rs 1123.62 crore in FY2025. '| City Union Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 1605.33 | 1388.64 | 16 | 5834.04 | 5270.57 | 11 |
| Interest Expended | 980.04 | 843.47 | 16 | 3518.33 | 3147.10 | 12 |
| Net Interest Income | 625.29 | 545.17 | 15 | 2315.71 | 2123.47 | 9 |
| Other Income | 243.88 | 192.13 | 27 | 898.06 | 741.66 | 21 |
| Net Total Income | 869.17 | 737.30 | 18 | 3213.77 | 2865.13 | 12 |
| Operating Expenses | 418.25 | 363.81 | 15 | 1535.15 | 1348.39 | 14 |
| Operating Profits | 450.92 | 373.49 | 21 | 1678.62 | 1516.74 | 11 |
| Provisions & Contingencies | 70.00 | 39.00 | 79 | 262.00 | 286.00 | -8 |
| Profit Before Tax | 380.92 | 334.49 | 14 | 1416.62 | 1230.74 | 15 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 380.92 | 334.49 | 14 | 1416.62 | 1230.74 | 15 |
| Provision for tax | 75.00 | 70.00 | 7 | 293.00 | 215.00 | 36 |
| PAT | 305.92 | 264.49 | 16 | 1123.62 | 1015.74 | 11 |
| EPS*(Rs) | 16.5 | 14.3 | ' | 15.2 | 13.7 | ' |
| Equity | 74.1 | 74.1 | ' | 74.1 | 74.1 | ' |
| Adj BV (Rs) | 122.7 | 104.5 | ' | 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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