Earnings Review
City Union Bank PAT up despite higher provision, beats view
This story was originally published at 18:53 IST on 27 April 2026
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--City Union Bank Jan-Mar net profit INR 3.60 bln
--Analysts saw City Union Bank Jan-Mar net profit INR 3.47 bln
--City Union Bank Jan-Mar net profit INR 3.60 bln vs INR 2.88 bln year ago
--City Union Bank Jan-Mar total income INR 21.46 bln vs INR 17.84 bln yr ago
--City Union Bank to pay INR 2 per share dividend
--City Union Bank approves 1-for-3 bonus share issue
--City Union Bank Jan-Mar provisions INR 1.20 bln vs INR 780 mln year ago
--City Union Bank gross NPA ratio 1.91% on Mar 31 vs 2.17% qtr ago
--City Union Bank net NPA ratio 0.68% on Mar 31 vs 0.78% qtr ago
--City Union Bank Basel III capital adequacy ratio 21.92% on Mar 31
--City Union Bank provision coverage ratio 84% on Mar 31
--City Union Bank FY26 net profit INR 13.26 bln vs INR 11.24 bln year ago
--City Union Bank FY26 total income INR 79.09 bln vs INR 67.32 bln yr ago
By Shumaila Firoz
MUMBAI – City Union Bank reported strong year-on-year growth in net profit for the March quarter, driven primarily by interest income. The bank's profit exceeded expectations despite a rise in provisions during the quarter.
The bank reported a net profit of INR 3.60 billion in the March quarter, up nearly 25% on year and over 8% sequentially. Analysts had estimated the net profit at INR 3.47 billion. Interest income rose 21% on year and nearly 6% on quarter to INR 18.56 billion for the March quarter.
Interest expense was INR 10.70 billion for the reporting quarter, up nearly 15% on year and 7% on quarter. The bank's provisions other than tax and contingencies were INR 1.20 billion, up nearly 54% on year and 25% from the previous quarter.
The private-sector bank's performance in the March quarter was supported by steady revenue growth across segments. Retail banking, which contributed just over 60% of the bank's top line, remained the key driver of revenue growth. Treasury income, too, saw a strong contribution. Retail banking segment revenue rose nearly 24% on year to about INR 13.05 billion during the March quarter. The revenue from digital banking, albeit small, almost doubled on year to INR 15 million.
Revenue from corporate and wholesale banking, which accounts for around 20% of the bank's revenue, grew to INR 4.11 billion in the quarter from INR 3.61 billion a year ago. The treasury segment reported revenue of INR 3.69 billion, up from INR 3.14 billion a year ago.
City Union Bank reported strong growth in advances, as it rose to INR 658.75 billion as of March end from INR 520.81 billion a year ago. Deposits also increased significantly to INR 783.08 billion from INR 635.26 billion last year, supporting loan growth.
The asset quality improved sequentially, with gross non-performing asset ratio declining to 1.91% from 2.17% in the previous quarter, while the net NPA ratio eased to 0.68% as on Mar. 31 from 0.78% a quarter earlier. The bank maintained a provision coverage ratio of 84?spite higher provisions during the quarter. The capital adequacy ratio under Basel-III norms was 21.92% as of March-end.
The bank's net profit for 2025-26 (Apr-Mar) rose 18% on year at INR 13.26 billion and total income grew over 17% at INR 79.09 billion. Monday, shares of the bank closed 3.3% higher at INR 271.21 on the National Stock Exchange. The bank announced its financial results post-market hours.
The bank's board declared a dividend of INR 2 per share for FY26. The board also approved the issuance of one bonus share for every three shares held in the bank. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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