City Union Bank (CUB) Q1 25/26 earnings summary

Executive summary

• Achieved record quarterly PAT exceeding INR 3,059 million for Q1 FY26, with strong double-digit credit and deposit growth year-over-year.

• Credit growth reached 16% year-over-year, with advances rising to INR 540,203 million.

• Deposit growth stood at 20% year-over-year, reaching INR 657,345 million.

• Asset quality improved, with gross NPA at 2.99% and net NPA at 1.20% for Q1 FY26.

• Capital adequacy ratio (Basel III) remained strong at 23.10%, with Tier I at 22.09%.

Financial highlights

• Interest income grew 16% year-over-year to INR 1,605 crore; total income for Q1 FY26 was ₹184,920.40 lakhs.

• Other income increased 27% to INR 244 crore, with treasury profit of INR 64 crore.

• Operating profit rose 21% to INR 451 crore; PAT up 16% to INR 3,059 million.

• Cost-to-income ratio improved to 48.12% from 49.34% year-over-year.

• ROA at 1.55% for Q1 FY26, with ROE at 12.85%.

Outlook and guidance

• Expecting mid-teen credit growth, 2%-3% above industry average, subject to market conditions.

• NIM guidance maintained at 3.5% for FY25/26, with minor quarterly fluctuations.

• ROA expected to remain above 1.5%; cost-to-income ratio to stay within 48%-50%.

• Focus remains on MSME, retail, and granular asset profiles, with continued digitalization.

• Credit cost guidance for FY26 at 0.2%-0.25%.