Earnings Review
Robust interest income boosts City Union Bank profit growth
This story was originally published at 18:39 IST on 31 July 2025
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--City Union Bank Basel III capital adequacy ratio 23.10% as on Jun 30
--City Union Bank net NPA ratio 1.20% as on Jun 30 vs 1.25% qtr ago
--City Union Bank gross NPA ratio 2.99% as on Jun 30 vs 3.09% qtr ago
--City Union Bank Apr-Jun provisions INR 700 mln vs INR 390 mln year ago
--City Union Bank Apr-Jun total income INR 18.49 bln vs INR 15.81 bln yr ago
--City Union Bank Apr-Jun net profit INR 3.06 bln vs INR 2.64 bln year ago
--Analysts saw City Union Bank Apr-Jun net profit INR 2.89 bln
--City Union Bank Apr-Jun net profit INR 3.06 bln
By Krity Ambey
NEW DELHI – Robust interest income helped City Union Bank beat the Street estimate on net profit growth in the June quarter, even as the lender's provisions nearly doubled from the low base of the year-ago quarter. The bank's bottom line showed an increase on year as well as on quarter.
City Union bank's net profit grew 15.7% on year to INR 3.06 billion in the June quarter. This is against analysts' profit expectation of INR 2.89 billion. Sequentially, the bank's bottom line was up 6.2%.
The interest income of City Union Bank grew 15.6% on year to INR 16.05 billion in Apr-Jun. This took the bank's total income to INR 18.49 billion, up 17% on yea
City Union Bank's net interest income for the June quarter grew 15% on year to INR 6.25 billion and other income surged 27% on year to INR 2.44 billion.
The bank's cost of funds rose marginally to 4.96% in the reporting quarter from 4.95% in the March quarter and 4.80% in the corresponding period last year. As of Jun. 30, the Tamil Nadu-based bank's net interest margin was 3.54% compared to 3.60% in the trailing quarter.
The bank's provisions for bad loans in Apr-Jun were INR 700 million, up 79.5% on year. This marks the eighth consecutive quarter the bank's provisions for bad loans are below INR 1 billion. Sequentially, the lender's provisions fell 10.3%.
The bank's asset quality improved in the June quarter, with the gross non-performing asset ratio at 2.99% as on Jun. 30 compared with 3.09% a quarter ago and 3.88% as on Jun. 30, 2024. The net non-performing asset ratio was 1.20% as on Jun. 30 compared with 1.25% as on Mar. 31 and 1.87% as on Jun. 30, 2024. The bank's provision coverage ratio was 79% and the capital adequacy ratio was 23.10% as on Jun. 30.
Total deposits with the bank increased 20% on year to INR 657.35 billion as on Jun. 30 and advances rose 16% on year to INR 540.20 billion. The bank declared its results after market hours Thursday. On the National Stock Exchange, shares of City Union Bank had ended 3.5% higher at INR 214.28. End
Edited by Ashish Shirke
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