City Union Bank Reports 15% PAT Growth in Q2 FY 2026
Filing Summary
City Union Bank Ltd announced its Q2 FY 2026 financial results, reporting a 15% increase in Profit After Tax (PAT) to Rs. 329 crore compared to Rs. 285 crore in Q2 FY 2025. The bank’s total income rose to Rs. 1,912 crore, a 15% increase from the previous year. Deposits grew by 21% to Rs. 69,486 crore, while advances increased by 18% to Rs. 57,561 crore. The Gross NPA ratio improved to 2.42% from 3.54%. The capital adequacy ratio stood at 21.68%, adhering to RBI’s Basel III norms.
City Union Bank Ltd has released its financial results for the second quarter of the fiscal year 2026. The bank reported a 15% increase in Profit After Tax (PAT), reaching Rs. 329 crore, compared to Rs. 285 crore in the same quarter of the previous year. The total income for Q2 FY 2026 was Rs. 1,912 crore, marking a 15% increase from Rs. 1,660 crore in Q2 FY 2025. The interest income rose to Rs. 1,653 crore, and non-interest income increased to Rs. 259 crore, reflecting growth rates of 15% and 14%, respectively.
The bank’s interest expense for the quarter was Rs. 987 crore, up from Rs. 851 crore, representing a 16% increase. Operating expenses rose by 20% to Rs. 455 crore. The net interest income was Rs. 667 crore, a 14% increase from Rs. 582 crore in the previous year. The operating profit reached Rs. 471 crore, showing a 10% growth. The provision for bad debts was Rs. 110 crore, slightly higher than Rs. 102 crore in the previous year.
City Union Bank’s total deposits increased by 21% to Rs. 69,486 crore from Rs. 57,369 crore in Q2 FY 2025. The CASA ratio was 27% of total deposits. The cost of deposits marginally decreased to 5.71% from 5.75%. The bank’s total advances rose by 18% to Rs. 57,561 crore, with an average credit-deposit ratio of 83%. The yield on advances for H1 FY 2026 was 9.73%, slightly up from 9.70% in H1 FY 2025.
The bank’s asset quality improved, with the Gross NPA ratio reducing to 2.42% from 3.54% in the previous year. The Net NPA ratio decreased to 0.90% from 1.62%. The provision coverage ratio was 82% including technical write-offs and 63% excluding them. The net interest margin for Q2 FY 2026 was 3.63%, showing an increase from 3.54% in Q1 FY 2026.
The return on assets stood at 1.59%, consistent with the previous year’s performance. The return on equity was 13.15% for H1 FY 2026, compared to 12.74% in H1 FY 2025. The cost to income ratio was 49.16%, up from 47.06% in Q2 FY 2025. The bank’s capital adequacy ratio was 21.68%, with Tier-1 capital adequacy at 20.71%, both exceeding regulatory requirements.
City Union Bank is a private sector bank with 889 branches across 18 states and 4 Union territories. It is regulated by the Reserve Bank of India and offers a range of banking services, including ATMs, net banking, mobile banking, and e-wallets. The bank focuses on serving SMEs, agriculture, and traders, alongside other banking activities.