City Union Bank Limited reported robust financial growth for the quarter and year ended March 31, 2026. The bank achieved its highest business growth in recent years at 24%, with annual Profit After Tax (PAT) rising to INR 1,326 crore, an 18% year-on-year increase. Dr. N. Kamakodi marks the end of his 15-year tenure as MD and CEO, passing the leadership to Shri R. Vijay Anandh effective May 1, 2026.
Key Financial Highlights
City Union Bank showcased strong performance for FY2026, driven by a consistent focus on core segments. The bank’s total business growth reached 24% on a year-on-year basis, the highest since FY2013. Advances grew by 26% in Q4 FY2026, reaching INR 66,698 crore, while deposits grew by 23% to INR 78,308 crore. Net Interest Margin (NIM) for the year stood at 3.74%, a 14-basis point improvement over the previous year.
Asset Quality Improvements
The bank maintained a healthy asset quality profile, with Gross NPA reducing to 1.91%, falling below the 2% mark for the first time in 11 years. Net NPA also improved significantly to 0.68% from 1.25% the previous year. The Provision Coverage Ratio (PCR) with technical write-offs reached 84%, reflecting the bank’s conservative risk management and successful recovery strategies.
Leadership Transition
A significant milestone in the bank’s history is the leadership transition. Dr. N. Kamakodi completes his 15-year tenure as Managing Director and CEO on April 30, 2026. Under his leadership, the bank achieved a CAGR of 17% in both market capitalization and net worth. Shri R. Vijay Anandh will assume the role of MD and CEO on May 1, 2026, with a continued focus on core MSME, gold loans, and secured retail sectors.
Strategic Outlook for FY2027
Looking ahead, the management aims for credit growth that remains 2% to 3% above the industry average. The bank continues to prioritize the MSME segment, which accounts for approximately 55% to 60% of its portfolio, alongside a strategic push in gold loans and secured retail products. With the opening of its 1,000th branch, the bank is well-positioned to leverage its expanded distribution network for sustainable growth in the coming fiscal year.
Source: BSE
