City Union Bank Limited reported a steady performance for the quarter ended September 30, 2025 (Q2 FY26), driven by higher interest income, improved asset quality, and stable loan growth.
Key Financial Highlights
- Net Profit: ₹329 crore, up 15.1% year-on-year from ₹285 crore.
- Net Interest Income (NII): ₹666.5 crore, up 14.4% YoY from ₹582.5 crore.
- Gross NPA: 2.42%, improved from 2.99% in the previous quarter.
- Net NPA: 0.89%, down from 1.20% in Q1 FY26.
The improvement in asset quality was attributed to robust credit monitoring and disciplined recovery efforts, reflecting the bank’s consistent focus on maintaining a healthy portfolio.
Operational Performance
City Union Bank witnessed steady growth in advances and deposits, supported by demand from retail and small business segments. Core banking operations benefited from a stable interest rate environment and improved liquidity conditions.
Strategic Initiatives
The bank continues to prioritise prudent lending practices, digital transformation, and operational efficiency to enhance customer engagement and sustain profitability. Initiatives to expand digital offerings and streamline internal processes are expected to further strengthen its balance sheet and long-term growth prospects.
Summary:
City Union Bank posted a net profit of ₹329 crore for Q2 FY26, marking a 15% year-on-year rise, while NII grew 14.4% to ₹666.5 crore. Asset quality improved significantly, with gross NPA reducing to 2.42% and net NPA to 0.89%. The bank’s performance was supported by steady loan growth, efficient operations, and a continued focus on digital and credit quality initiatives.
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