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, the highest in a decade.

• Celebrated 120 years of operations, focusing on MSME, retail, and trade lending, with 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.

• Standalone unaudited financial results for Q2 FY2026 and H1 FY2026 were approved by the Board on November 3, 2025, and subjected to a limited review by statutory auditors.

Financial highlights

• Advances grew to INR 57,561 crores (up from INR 48,722 crores in Q2 FY2025); deposits rose to INR 69,486 crores (from INR 57,369 crores).

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

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

• Gross NPA reduced to 2.42% (from 3.54% a year ago); net NPA at 0.90% (down from 1.62%).

Outlook and guidance

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

• Continued focus on MSME, secured retail, and renewable energy lending, with emphasis on technology adoption and digital products.

• NIM projected to stay stable with a positive bias in Q3 and Q4, supported by deposit repricing and fixed-rate gold loans.

• ROA expected to remain above 1.5%.

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