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

Executive summary

• Achieved double-digit credit growth for six consecutive quarters, with Q2 FY2026 advances up 18% year-over-year to INR 57,561 crores, the highest Q2 credit growth in a decade.

• Deposits grew 21% year-over-year to INR 69,486 crores, with CASA momentum supported by a dedicated team and branch focus.

• Celebrated 120 years of operations with a focus on MSME, retail, and trade lending, maintaining a granular asset profile and robust risk management.

• Pan-India presence with 889 branches, stronghold in South India, and a diversified investor base.

• Recognized for digital innovation, winning multiple awards for technology and customer experience.

Financial highlights

• Advances increased by INR 8,839 crores year-over-year; Q2 alone saw 7% sequential growth.

• Deposits rose by INR 12,117 crores year-over-year and 6% sequentially.

• Net profit for Q2 FY26 rose 15% year-over-year to ₹3,286 million; H1 FY26 net profit up 15% to ₹6,345 million.

• Interest income grew 15% year-over-year to INR 1,653 crores in Q2 FY2026.

• Gross NPA reduced to 2.42% (from 3.54%); Net NPA at 0.90% (from 1.62%) year-over-year.

Outlook and guidance

• Expecting credit growth to remain 2%-3% above industry average.

• NIM guided to remain stable with a positive bias, supported by deposit repricing and fixed-rate gold loans.

• Cost-to-income ratio expected to hover between 48%-50% for FY2026.

• ROA expected to stay above 1.5%.

• Continued focus on asset quality, with recoveries expected to outpace slippages in the next two quarters.