City Union Bank Limited has released its unaudited financial results for the second quarter and half-year ended September 30, 2026. The bank reported a robust 27% year-on-year growth in net profit for Q2 FY27, reaching ₹416 crore. Total business crossed the ₹150,000 crore milestone. The earnings call transcript details advances growth, deposit strategies, asset quality, and future outlook, including NIM projections of 3.85% to 3.95% and ROA above 1.6%.
City Union Bank Announces Strong Q2 FY27 Performance
City Union Bank Limited (CUB) has announced its unaudited financial results for the second quarter (Q2) and the half-year (H1) ended September 30, 2026. The bank demonstrated strong growth across key financial parameters, with net profit for Q2 FY27 rising by 27% year-on-year to ₹416 crore, compared to ₹329 crore in Q2 FY26. For the half-year ended, net profit stood at ₹798 crore, a 26% increase from ₹635 crore in H1 FY26.
Key Financial Highlights and Growth Drivers
During the quarter, CUB achieved a significant milestone by crossing ₹150,000 crore in total business. Advances saw a healthy 26% year-on-year growth in Q2 FY27, reaching ₹72,442 crore. The bank’s core strength, MSME, increased by ₹2,600 crore, and secured retail loans grew by ₹1,134 crore. The gold loan portfolio also saw an increase of ₹1,062 crore, now standing at ₹21,777 crore.
Deposit Growth and NIM Projections
Deposit growth aligned with credit growth, with deposits growing 21% to ₹83,893 crore in Q2 FY27. The Net Interest Margin (NIM) increased to 3.87% in Q2 FY27 from 3.78% in Q1 FY27. Looking ahead, the bank projects NIM to be in the range of 3.85% to 3.95% for Q3 and Q4 FY27. The cost-to-income ratio for Q2 FY27 improved to 45.96% from 49.16% in Q2 FY26.
Asset Quality and Future Outlook
Asset quality remained stable, with Gross NPA percentage reducing to 1.44% in Q2 FY27. Net NPA reduced to 0.48%. The bank is on track to achieve its credit growth target of 2-3% above the industry level. Future focus will be on MSME, gold loan segments, and exploring new avenues for growth, with an emphasis on secured lending. Return on Assets (ROA) is expected to be above 1.6% for FY27.
Source: BSE
