City Union Bank (CUB) reports strong performance in its Q3 & 9M FY26 investor presentation. Key highlights include a 21% increase in deposits, a 21% growth in advances, and a robust expansion of total business. The bank maintains superior ROA and ROE with a strategic focus on Swadeshi Banking Excellence, while operating with 901 branches and embracing digital transformation.
Financial Performance Overview
City Union Bank showcases a strong financial performance, demonstrating consistent growth across key metrics.
- Deposits increased by 21%, rising from ₹583 Bn to ₹705 Bn year-over-year.
- Advances also registered a 21% increase, growing from ₹504 Bn to ₹609 Bn year-over-year.
- Overall business volume expanded by 21%, climbing from ₹1,087 Bn to ₹1,314 Bn year-over-year.
Key Financial Ratios
The bank maintains healthy financial ratios, reflecting efficient operations and profitability:
- Return on Assets (ROA) stands at 1.53%.
- Net Interest Margin (NIM) is reported at 3.89%.
- Return on Equity (ROE) is strong at 13.18%.
Asset Quality
City Union Bank continues to focus on maintaining asset quality:
- Gross NPA is reported at 2.17%, and Net NPA is at 0.78%.
- Provision Coverage Ratio (PCR) is 83% with Technical Write-off (TW) and 64% without TW.
- CRAR is 20.13% under Basel III norms, with core CRAR at 19.18%.
Strategic Focus
CUB is strategically focused on:
- SME/MSME sectors.
- Prudent risk management.
- Investing in robust infrastructure.
- Maintaining a purely retail liability franchise.
Technology and Digital Initiatives
The bank is actively adopting technology to enhance its service offerings:
- Introduction of Digital Lending Process.
- UPI Reserve Pay and UPI ATM.
- AI Conversational BOT.
Branch Network
City Union Bank has a wide presence with 901 branches across India, with a significant presence in South India (747 branches), of which 563 are located in Tamil Nadu.
Shareholding Pattern
The investor base is well-diversified, with a significant portion held by Mutual Funds, FIIs, and Banks.
Corporate Governance
The bank maintains a strong board with experienced members and adheres to high standards of corporate governance practices.
Source: BSE
