News ArticleCity Union Bank Reports 27% Rise in Q2 FY 2027 Net Profit to Rs. 4,159 Million on 23% Business Growth
Deposits increased 21% year-over-year to Rs. 839 billion and advances rose 26% to Rs. 724 billion in the quarter ended September 30, 2026
City Union Bank posted a 27% increase in net profit to Rs. 4,159 million for the quarter ended September 30, 2026, driven by a 23% growth in total business to Rs. 1,563 billion and a 31% rise in net interest income to Rs. 8,728 million. Deposits and advances grew by 21% and 26% respectively, while asset quality remained stable with a gross NPA of 1.44%. The bank recorded a return on assets of 1.62% and a return on equity of 15.01% during the quarter.
City Union Bank Limited
Investor Presentation
City Union Bank Limited announced a 27% growth in net profit to Rs. 4,159 million for the quarter ended September 30, 2026, alongside strong growth in deposits, advances, and overall business.
The bank's total business increased by 23% year-over-year, reaching Rs. 1,563 billion in Q2 FY 2027 from Rs. 1,270 billion in the same quarter last year.
Deposits grew by 21% to Rs. 839 billion, while advances rose 26% to Rs. 724 billion year-over-year.
Net interest income improved by 31% year-over-year to Rs. 8,728 million, contributing to a 40% rise in operating profit to Rs. 6,609 million.
The bank reported a return on assets (ROA) of 1.62% and a return on equity (ROE) of 15.01%, maintaining its long-term performance averages.
Asset quality remained stable with a gross non-performing asset (NPA) ratio of 1.44% and net NPA at 0.48%. The provision coverage ratio stood at 82% including technical write-offs, ensuring adequate coverage against potential loan losses.
Highlights
- Net profit increased 27% year-over-year to Rs. 4,159 million in Q2 FY 2027.
- Deposits reached Rs. 838,931 million, up 21% from the prior year quarter.
- Advances grew 26% to Rs. 724,415 million compared to the previous year.
- Net interest margin improved to 3.87%, supporting 31% growth in net interest income.
- Gross NPA ratio was maintained at 1.44% with net NPA at 0.48%.
- Capital adequacy ratio (CRAR) stood healthy at 21.26% under Basel III norms.
Key Data Snapshot
What happened
- City Union Bank reported its standalone unaudited financial results for Q2 and half-year ended September 30, 2026.
- The Bank recorded a net profit of Rs. 4,159 million, a 27% increase compared to Q2 of the previous year.
- Deposits grew by 21% year-over-year to Rs. 838,931 million while advances increased by 26% to Rs. 724,415 million.
- Total business (deposits + advances) rose by 23% to Rs. 1,563 billion.
- Net interest income increased by 31% to Rs. 8,728 million, supporting a 40% rise in operating profit to Rs. 6,609 million.
Financial performance
- Net interest margin improved to 3.87% in Q2 FY 2027, supporting profitability.
- Return on assets stood at 1.62%, reflecting stable performance.
- Return on equity was 15.01%, consistent with the bank's long-term average.
- Gross NPA ratio was maintained at 1.44% with net NPA at 0.48%, evidencing stable asset quality.
- Provision coverage ratio was healthy at 82% including technical write-offs.
- Capital adequacy ratio as per Basel III norms was robust at 21.26%, supporting strong capitalization.
Background and context
- City Union Bank has a focus on SMEs and MSMEs with about 39% of the loan book in this segment.
- The bank follows a granular lending strategy with fully collateralized loans to minimize risk.
- It operates pan-India, with an emphasis on semi-urban, urban, and unbanked rural areas.
- The bank has a legacy of 120+ years with continuous profitability and prudent governance practices.
- Advanced technology adoption and diversified asset profile contribute to the bank's stability and growth.
Highlights
- Net profit increased 27% year-over-year to Rs. 4,159 million in Q2 FY 2027.
- Deposits reached Rs. 838,931 million, up 21% from the prior year quarter.
- Advances grew 26% to Rs. 724,415 million compared to the previous year.
- Net interest margin improved to 3.87%, supporting 31% growth in net interest income.
- Gross NPA ratio was maintained at 1.44% with net NPA at 0.48%.
- Capital adequacy ratio (CRAR) stood healthy at 21.26% under Basel III norms.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015
Source Information
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