More Stories

Informist, Tuesday, Jul. 28, 2026

 

Please click here to read all liners published on this story

--City Union Bk: Have not seen any stress due to West Asia war 
--City Union Bk: Had treasury gains of INR 520 mln in Apr-Jun 
--City Union Bk: To focus on secured lending for credit growth 
--City Union Bk: Expect NIM to be in 3.65-3.70% range 
--CONTEXT: Comments by City Union Bank's mgmt in post-earnings analyst call 
--City Union Bk: Expect current credit growth to continue

 

By Sagar Sen and Nandini Sinha

 

MUMBAI/NEW DELHI – City Union Bank expects robust credit growth to continue in the coming quarters, its Managing Director and Chief Executive Officer R. Vijay Anandh said Tuesday. The bank's advances grew 25% on year to INR 676.45 billion in the June quarter. "We have achieved consistent credit growth and we hope that the current trend will continue," Anandh said in a post-earnings call with analysts.

 

"We are very conscious of improving credit growth only through secured lending, while venturing into other avenues to achieve credit growth. At least 2-3% over and above that of the industry. Our deposit growth is aligning with our credit growth, which is helping us to maintain the desired credit-deposit ratio". Anandh also said the bank has not witnessed any stress due to the war in West Asia.

 

Anandh said out of the total advances, gold loans would be between 31-32%, micro, small and medium enterprises would be around 55-60% and the remaining 10% would be retail.

 

The bank expects its net interest margin to be hit in the coming quarters. "For Q1 FY27 (Apr-Jun), NIM stood at 3.78%. With the term deposit rates on the verge of rising due to high demand, we expect the cost of deposits may slightly increase in the next few quarters, which will impact the NIM levels around 5 basis points," Anandh said. "We expect the NIM to hover around 3.65-3.70%."

 

The Tamil Nadu-based bank's net profit in the June quarter grew 25% on year to INR 3.83 billion, driven by improved asset quality and strong loan growth. The total income of the lender grew 21% on year to INR 22.29 billion.

 

The bank's staff costs will increase from the September quarter as the annual salary hikes will kick in from August, Anandh said. However, the bank expects good momentum in other income going ahead. During the June quarter, the bank had treasury gains of INR 520 mln.

 

Tuesday, the bank's shares ended 7.5% higher at INR 238.14 on the National Stock Exchange.  The bank announced its results during market hours.  End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.