City Union Bank Q2 net up 27% at ₹416 crore on core biz growth
City Union Bank posts 27% Q2 net growth to ₹416 crore on strong core business, with deposits, advances, and NIM rising, while asset quality improves.
Private sector lender City Union Bank (CUB) reported net profit up by 26 per cent at ₹416 crore for the quarter ended September 2026 on the back of robust core business growth. The bank earned a netinterest income of ₹873 crore for Q2 FY27, up 31 per cent y-o-y.
The growth was also driven by a 26 per cent growth in total advances to ₹72,442 crore. The bank’s major segment of MSME lending stood at ₹28,084 crore, up from ₹23,087 crore in the year-ago period. Gold loan as of September 2026 was ₹21,726 crore as against ₹16,330 crore for September 2025.
Total deposits of the bank increased by 21 per cent y-o-y to ₹83,893 crore.
“Though we had anticipated a higher cost, easing of liquidity by regulatory measures such as FCNR(B) has helped to reduce the cost of deposits in this year,” the bank said in a statement. Cost of deposits reduced to 5.56 per cent in Q2 FY27 from 5.71 per cent in Q2 FY26. The average credit-deposit ratio stood at 86 per cent.
Marginal reduction
A marginal reduction in the cost of deposits also helped in maintaining net interest margins (NIM). NIM came in at 3.87 per cent for Q2 FY27 as against 3.63 per cent in Q2 FY26. For H1FY27, NIM stood at 3.83 per cent as against 3.59 per cent in the same period last year.
Asset quality improved, with Gross NPA for Q2 FY27 reduced to 1.44 per cent from 2.42 per cent in the corresponding quarter last fiscal year. Net NPA was decreased by 42 bps to 0.48 per cent from 0.90 per cent for the same period. The private sector lender also crossed the milestone of ₹1,50,000 crore in total business during the quarter ended September 2026.
On the provisions front, CUB said it has made a contingent provision of ₹50 crore during this quarter specifically for unforeseen economic uncertainties.
Vijay Anandh, Managing Director and Chief Executive Officer, CUB, said that the growth is in line with our expectations for this fiscal.
“We remain on track to deliver around 20 per cent business growth in FY27,” he said. The increase in advances has come with improving asset quality, and the environment for retail deposit mobilisation has also remained favourable, he added
The bank’s capital adequacy as of 30.09.2026 as per Reserve Bank of India (RBI) guidelines on Basel III norms is 21.26 per cent, above regulatory requirements. The old sector private sector bank has 1002 branches across 19 states and 4 union territories.
The shares of the bank closed the trading day at ₹215.80, up about 1.2 per cent on the BSE.
Source: BusinessLine Money & Banking, BusinessLine Money & Banking, BusinessLine Money & Banking, BusinessLine Economy, ET Markets, BusinessLine Money & Banking
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