City Union Bank Reports Strong Q1 FY27 Results with Profit and Asset Quality Improvements
City Union Bank Limited announced its performance results for the first quarter of Financial Year 2026-27, demonstrating robust growth across key operational areas. The bank reported a significant rise in profit, coupled with improvements in asset quality during the period ended June 30, 2026.The Board of Directors approved the standalone un-audited financial results for the quarter.
Financial Performance Overview (Q1 FY27 vs Q1 FY26)
The bank saw marked growth in its income generation and profitability. Total Income grew by 21%, while Net Interest Income increased substantially.| Particulars | Q1 FY27 | Q1 FY26 | Growth (%) |
|---|---|---|---|
| Interest Income | 1,985 Cr | 1,605 Cr | 24% |
| Non-Interest Income | 244 Cr | 244 Cr | - |
| Total Income | 2,229 Cr | 1,849 Cr | 21% |
| Interest Expense | 1,165 Cr | 980 Cr | 19% |
| Operating Expense | 483 Cr | 418 Cr | 16% |
| Total Expense | 1,648 Cr | 1,398 Cr | 18% |
| Net Interest Income | 820 Cr | 625 Cr | 31% |
| Operating Profit | 581 Cr | 451 Cr | 29% |
| Profit After Tax (PAT) | 383 Cr | 306 Cr | 25% |
Balance Sheet and Asset Quality Status
The bank’s balance sheet showed healthy expansion in deposits and advances. Total Business grew by 23%, driven by increased Deposits and Advances.Key movements in the balance sheet are detailed below:
| Indicator | Q1 FY27 (Cr) | Q1 FY26 (Cr) | Change | Growth (%) |
|---|---|---|---|---|
| Deposits | 79,342 | 65,734 | 13,608 | 21% |
| Advances | 67,645 | 54,020 | 13,625 | 25% |
| Total Business | 146,987 | 119,754 | 27,233 | 23% |
| CASA | 21,094 | 17,951 | 3,143 | 18% |
Asset Quality Metrics
The bank demonstrated an improvement in asset quality during the quarter. Gross Non-Performing Assets (NPA) reduced significantly compared to the previous year.| Metric | Q1 FY27 | Q1 FY26 |
|---|---|---|
| Gross NPA | 1,170 Cr | 1,617 Cr |
| Gross NPA (%) | 1.73% | 2.99% |
| Net NPA | 405 Cr | 635 Cr |
| Net NPA (%) | 0.61% | 1.20% |
Key Financial Ratios and Performance Insights
The bank’s lending metrics saw steady performance. Advances grew by 25% in Q1 FY27 and stood at Rs. 67,645 Cr, with the yield on advances reported at 9.79%.Net Interest Margin (NIM) improved to 3.78% for Q1 FY27. The Cost to Income Ratio (CIR) was recorded at 45.42%, down from 48.12% in the corresponding period last year.
Capital adequacy stands at 21.72% as of June 30, 2026, with Tier-1 capital adequacy at 20.97%.
Financial highlights include:
- Net Interest Income: The bank earned Rs. 820 Cr in Net Interest Income for Q1 FY27, a 31% growth from the Rs. 625 Cr recorded in Q1 FY26.
- Operating Profit: Gross Profit rose by 29%, reaching Rs. 581 Cr compared to Rs. 451 Cr in Q1 FY26.
- Profit After Tax (PAT): PAT increased by 25% to Rs. 383 Cr, up from Rs. 306 Cr in Q1 FY26.
- Cost of Deposits: Cost of deposits stood at 5.56% for Q1 FY27, down compared to 5.95% in Q1 FY26.
- Return on Equity (ROE): ROE was noted at 14.37% in Q1 FY27, compared to 12.85% in Q1 FY26.
CUB Stock Price Movement
City Union Bank Limited shares are surging in live trading, trading up 7.47% as of 3:26 PM with the stock currently priced at ₹238.The equity's strong performance comes amid active market interest, with nearly 19 million shares changing hands today.
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