City Union Bank (CUB) Q3 24/25 earnings summary

Executive summary

• Achieved 14.6% year-over-year credit growth in Q3 FY25, with gross advances at ₹504,093 Mn and deposits up 11% to ₹582,713 Mn.

• Net profit for Q3 FY25 rose 13% year-over-year to ₹2,860 Mn, and for 9M FY25 increased 10% to ₹8,356 Mn.

• Asset quality improved, with gross NPA down to 3.36% and net NPA at 1.24%-1.42% in Q3 FY25.

• Focus remains on secured lending, especially MSME, with minimal unsecured retail exposure and a granular asset profile.

• Board approved unaudited standalone financial results for Q3 and 9M FY25, reflecting compliance with revised RBI investment portfolio guidelines.

Financial highlights

• Interest income grew 12% year-over-year to ₹1,479 crore in Q3 FY25, with total income at ₹170,712 lakhs.

• Net Interest Margin (NIM) for Q3 FY25 was 3.58%-3.59%, up from 3.50% in Q3 FY24.

• Cost-to-Income Ratio improved to 46.58%-47.61% year-over-year.

• Provision Coverage Ratio (PCR) with technical write-off improved to 77%.

• Operating profit for Q3 FY25 was ₹43,599 lakhs, up from ₹36,403 lakhs year-over-year.

Outlook and guidance

• Credit growth guidance of 12-14% annually for the next 2-3 years, with focus on MSME and retail lending.

• Retail contribution to advances expected to rise from 2-2.5% in FY26 to 8-9% over 3-4 years.

• NIM expected to remain stable at 3.6% ±10 bps; cost-to-income ratio to be 48-50%.

• Stable asset quality and strong capital adequacy expected to support future expansion.

• Slippages expected to be ₹800 crore for FY25 and ₹700 crore for FY26.