City Union Bank has announced impressive financial results for the quarter and year ended March 31, 2026. The bank recorded a 25% increase in Profit After Tax (PAT) for Q4 FY 26 and an 18% growth for the full fiscal year. Amidst strong operational performance, the bank also celebrated a milestone by inaugurating its 1,000th branch in Kumbakonam, reflecting its continued geographical expansion and commitment to digital banking infrastructure.
Annual and Quarterly Performance Highlights
For the fiscal year ending March 31, 2026, City Union Bank demonstrated strong financial health. The bank reported an annual Profit After Tax (PAT) of ₹1,326 crore, marking an 18% growth over the previous year. Quarterly performance was particularly robust, with Q4 FY 26 PAT reaching ₹360 crore, representing a 25% increase compared to the same period last year. Total annual income for the year stood at ₹7,909 crore, a 17% increase from the prior fiscal year.
Operational Efficiency and Asset Quality
The bank saw significant improvement in asset quality, with Gross NPA reducing to 1.91% for FY 26, down from 3.09% in the previous year. Net NPA also decreased to 0.68%. Operational efficiency remained a focus, with Net Interest Income (NII) growing by 22% for the full year, reaching ₹2,830 crore. The bank’s Capital Adequacy Ratio stands at a strong 21.92%, well above regulatory requirements, ensuring a stable foundation for future growth.
Strategic Business Expansion
City Union Bank continues to scale its operations, reaching a landmark 1,000 branches with the latest inauguration in Ammachathiram, Kumbakonam. The bank now holds a total business volume of ₹145,007 crore. Strategic focus remains on SMEs, agriculture, and traders, supported by a comprehensive suite of digital banking solutions including mobile banking, e-wallets, and advanced net banking infrastructure.
Key Financial Ratios
- Return on Equity (ROE): Improved to 13.35% in FY 26.
- Net Interest Margin (NIM): Stood at 3.74% for the fiscal year.
- Cost of Deposits: Successfully reduced to 5.70% from 5.85% in FY 25.
- Provision Coverage Ratio (PCR): Maintained at 84% (including technical write-offs).
Source: BSE
