City Union Bank hosted its earnings conference call for Q3 & 9M FY2026. Key highlights include a 21% advance growth and deposit growth. Gross NPA reduced to 2.17%, while net NPA decreased to 0.78%. The bank’s net worth has crossed INR10,000 crores. The management expects high-teen growth for FY26 and a stable NIM for Q4. The bank’s ROA for Q3 FY26 stood at 1.53% and 1.55% for 9 months.
Financial Performance
City Union Bank reported a 21% year-over-year advance growth in Q3 FY2026, increasing to INR60,892 crores from INR50,409 crores in Q3 FY25. Deposit growth also stood at 21%, with deposits reaching INR70,516 crores in Q3 FY26 compared to INR58,271 crores in Q3 FY25.
Asset Quality
The bank continued to improve its asset quality. Slippages for Q3 FY26 were approximately INR193 crores, while total recoveries amounted to INR219 crores. Gross NPA decreased to 2.17% from 2.42% in Q2 FY26 and 2.99% in Q1 FY26. Net NPA also reduced to 0.78% in Q3 FY26 from 1.42% in the previous year.
Key Ratios
The average CD ratio for Q3 FY26 was 86%. The CASA percentage to total deposits was 27%. NIM increased from 3.63% in Q2 FY26 to 3.89% in Q3 FY26. The cost-to-income ratio for Q3 FY26 was 48.56% compared to 49.16% in Q2 FY26.
Strategic Focus
City Union Bank continues to focus on core MSME, gold loans, and secured retail. The bank aims to align deposit growth with credit growth, emphasizing CASA and granular deposits. The effects of CRR cut are expected to positively influence NIM levels in the next quarter. The bank’s net worth has crossed INR10,000 crores, marking a significant milestone.
Future Outlook
The management anticipates achieving high-teen growth for FY26, exceeding the industry-level growth. ROA is expected to remain at 1.5% plus. A stable NIM is expected for Q4 with a potential variation of 10 bps plus or minus.
Source: BSE
