City Union Bank has concluded the fiscal year 2026 with strong performance, reporting a net profit of ₹13,262 million, an 18% increase over the previous year. The bank demonstrated significant business growth, with total business reaching ₹1,450,068 million. Key indicators showed improvement, including a stable net interest margin of 3.74% and a notable reduction in net NPA to 0.68%, highlighting the bank’s focus on prudent risk management and digital innovation.
Annual Financial Highlights
For the financial year ended March 31, 2026, City Union Bank achieved significant financial milestones. The bank reported a net profit of ₹13,262 million, representing an 18% growth compared to ₹11,236 million in FY 2025. Total business expanded by 24%, rising from ₹1,165,924 million in the prior year to ₹1,450,068 million in FY 2026. This growth was supported by a 23% increase in deposits and a 26% growth in advances.
Operational Efficiency and Asset Quality
The bank maintained a healthy asset quality profile, with Gross NPA declining to 1.91% and Net NPA improving to 0.68% as of March 31, 2026. The provision coverage ratio stood strong at 84%. The bank’s commitment to operational efficiency is reflected in a cost-to-income ratio of 47.93%. Furthermore, the bank maintains a solid capital position with a CRAR of 21.92%, ensuring long-term stability and resilience.
Strategic Focus and Digital Transformation
City Union Bank continues to execute a specialized banking model centered on the MSME and retail trade segments, which now constitute approximately 37% of total advances. The bank has successfully advanced its digital capabilities, recently winning awards for AI & ML adoption and digital financial inclusion. Initiatives such as the introduction of a digital lending process in 2024 and various new digital product offerings demonstrate the bank’s focus on enhancing customer experience and operational automation.
Source: BSE
