City Union Bank (CUB) investor relations material

Executive summary

• Achieved highest-ever quarterly PAT of INR 383 crore (₹3,826 Mn/₹38,257.32 lakh) in Q1 FY 2027, up 25% year-over-year.

• Credit growth reached 25% year-over-year, with advances rising to INR 67,645 crore.

• Deposit growth was 21% year-over-year, reaching INR 79,342 crore.

• Maintained strong asset quality with Gross NPA at 1.73% and Net NPA at 0.61%.

• Continued focus on MSME/SME lending, dominating the portfolio and comprising 37% of the loan book.

Financial highlights

• Operating profit grew 29% year-over-year to INR 581 crore (₹58,057.32 lakh), the highest to date.

• Net Interest Income (NII) increased by 31% to Rs. 8,201 Mn.

• Cost-to-income ratio improved to 45.42% from 46.15% sequentially.

• NIM improved to 3.78%; yield on advances stable at 9.79%.

• Treasury gains for the quarter were INR 52 crore, up from INR 29 crore in Q4.

Outlook and guidance

• NIM expected to remain in the 3.65%-3.7% range in coming quarters.

• ROA guidance for FY 2027 is 1.55%-1.65%, with Q1 ROA at 1.57%.

• Cost-to-income ratio to be maintained at 47%-48% for FY 2027, with a long-term aspiration below 45%.

• Emphasis on technology adoption, digital banking, and expansion in semi-urban, urban, and rural areas.

• Credit growth targeted at 2%-3% above industry average, with continued focus on secured lending.