City Union Bank (CUB) Q4 24/25 earnings summary

Executive summary

• Board approved audited results for Q4 and FY25, with a dividend of INR 2 per share (200% of face value) recommended, subject to shareholder approval.

• Deposits and advances each grew 14% year-over-year, reaching INR 63,526 crore and INR 53,066 crore respectively as of March 2025.

• Net profit for FY25 rose 11% to INR 11,236 Mn (₹112,362.62 lakh), with net interest income up 9% to INR 23,157 Mn.

• Asset quality improved, with gross NPA at 3.09% and net NPA at 1.25%, both lower than the previous year.

• Strong capital adequacy ratio (Basel III) at 23.75%, with Tier 1 at 22.70%.

Financial highlights

• Gross advances and deposits grew 14% to INR 53,066 crore and INR 63,526 crore; CASA ratio at 16%-29%; LDR/CD ratio at 84%.

• Interest income rose 12% YoY in Q4 and 11% for FY25; other income up 21% YoY.

• Operating profit grew 25% YoY in Q4 and 11% for FY25; PAT up 13% in Q4 and 11% for FY25.

• Cost-to-income ratio at 47.77% for FY25, below guided range due to deferred retail expenses.

• ROA at 1.55% for FY25; ROE at 12.6% in Q4; EPS for FY25 was INR 15.17, up from INR 13.72 in FY24.

Outlook and guidance

• Targeting credit growth 2-3% above industry average for FY26, with deposit growth to match.

• NIM expected to remain in the 3.5%-3.7% range, with deposit repricing benefits to accrue over next 2-3 quarters.

• Slippages for FY26 guided at INR 650-700 crore, with recoveries expected to exceed slippages.

• Cost-to-income ratio expected at 48%-50% in FY26, reducing as retail vertical matures.

• Continued investment in digital initiatives and technology to enhance customer experience and operational efficiency.