Earnings Review
City Union Bank Q3 PAT up 16% on rise in interest income
This story was originally published at 19:05 IST on 2 February 2026
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--City Union Bank Oct-Dec net profit INR 3.32 bln
--Analysts saw City Union Bank Oct-Dec net profit INR 3.33 bln
--City Union Bank Oct-Dec net profit INR 3.32 bln vs INR 2.86 bln year ago
--City Union Bank Oct-Dec total income INR 20.01 bln vs INR 17.07 bln yr ago
--City Union Bank Oct-Dec provisions INR 960 mln vs INR 750 mln year ago
--City Union Bank gross NPA ratio 2.17% on Dec 31 vs 2.42% qtr ago
--City Union Bank net NPA ratio 0.78% on Dec 31 vs 0.90% qtr ago
--City Union Bank Basel III capital adequacy ratio 20.13% on Dec 31
--City Union Bank provision coverage ratio 83% on Dec 31
--City Union Bank Apr-Dec net profit INR 9.67 bln vs INR 8.36 bln year ago
--City Union Bank Apr-Dec total income INR 57.62 bln vs INR 49.48 bln yr ago
By Nandini Sinha
MUMBAI – City Union Bank posted a healthy on year growth in its net profit for the December quarter mainly due to a rise in its interest income. The bank's bottom line for the reporting quarter was also in line with the Street's estimate.
The bank posted a net profit of INR 3.32 billion, up over 16% on year and over 1% on quarter. Analysts had estimated the net profit for the December quarter at INR 3.33 billion. Shares of the bank closed at INR 285.45, slightly up from Sunday, on the National Stock Exchange. The bank released its earnings post market hours.
Interest income of the bank rose almost 19% on year to INR 17.56 billion in the December quarter. The total income of the bank for the reporting quarter was INR 20.01 billion, up over 17% on year and nearly 5% on quarter.
The net interest income of the lender rose to INR 7.52 billion, up nearly 28% on year and nearly 13% on quarter. This exceeded the Street's estimate of the bank's net interest income at INR 6.98 billion.
City Union Bank's total expenses rose to INR 14.88 billion, up over 17% on year and over 3% on quarter. Of this, operating expenses rose over 27% to INR 4.84 billion. The bank's expenses included a provision of INR 20 million on account of changes in labour codes. Its provisions for bad loans were up 28% at INR 960 million from INR 750 million in the year-ago quarter.
The bank's advances were INR 608.92 billion as of Dec. 31, up 21% on year. Its deposits rose to INR 705.16 billion, up 21% on year. The net interest margin for the December quarter was 3.89%, up from 3.63% in the trailinq quarter. The current account savings account ratio was 27% as of December end.
City Union Bank reported an improvement in its asset quality. Its gross non-performing assets ratio was 2.17% as of Dec. 31 compared with 2.42% as of Sept. 30. The net NPA ratio improved to 0.78% as of Dec. 31 from 0.90% a quarter ago.
Capital adequacy ratio as per Basel-III norms was 20.13% as of Dec. 31. City Union Bank's provision coverage ratio was 83%, including technical write off, and 64%, excluding technical write off, as of Dec. 31.
The bank's retail banking segment was the major source of its revenue at INR 11.50 billion, comprising over 57% of its total revenue. Of this, digital banking revenue rose to INR 12.9 million, up over 55% from the year-ago quarter.
City Union Bank's net profit for Apr-Dec was INR 9.67 billion, up nearly 16% on year. The total income for the nine-month period ended December was INR 57.62 billion, up over 16%. End
Edited by Akul Nishant Akhoury
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