City Union Bank (CUB) Q2 25/26 earnings summary

Executive summary

• Achieved 18% year-on-year advance growth and 21% deposit growth in Q2 FY2026, with the highest asset quality in a decade and a stable ROA of 1.59%.

• Celebrated 120 years of operations, with a pan-India presence, digital innovation awards, and a focus on MSME, retail, and trade lending.

• Standalone unaudited financial results for Q2 and H1 FY2026 were approved by the Board and received an unmodified auditor opinion.

• Strategic focus on MSME, gold loans, renewable energy lending, and digital transformation.

• Robust risk management and granular asset profile maintained.

Financial highlights

• Interest income rose 15% year-on-year to INR 1,653 crores in Q2 FY2026; net profit for Q2 FY26 up 15% to ₹3,286 million.

• Net Interest Income for Q2 FY26 increased 14% year-on-year to ₹6,665 million.

• Operating profit for Q2 FY2026 was ₹47,059 lakh, with PAT up 15% to ₹635 crores in H1 FY2026.

• Cost-to-income ratio for Q2 FY2026 at 49.16%, with H1 FY2026 at 48.66%.

• NIM improved to 3.63% in Q2 FY2026.

Outlook and guidance

• Credit growth expected to remain 2%-3% above industry average, with continued double-digit growth.

• NIM and ROA projected to remain stable with a positive bias; cost-to-income ratio to hover between 48%-50%.

• Continued focus on MSME, retail lending, digital transformation, and asset quality.

• Recoveries anticipated to outpace slippages for at least the next two quarters.

• No changes to significant accounting policies; RBI circulars implemented prospectively.