City Union Bank Q1 FY2026-27 Results: Profit Climbs 25% To ₹383 Crore

City Union Bank began FY27 on a solid note, reporting a net profit of ₹383 crore for the June quarter, compared with ₹306 crore a year earlier.

Higher lending income, steady business growth and lower bad loan ratios helped lift earnings, while investors welcomed the update by sending the stock more than 8% higher in Tuesday's trade.

Overall, the City Union Bank results highlighted strength in both profitability and loan quality.

City Union Bank Q1 FY27 Performance

The bank earned ₹1,985 crore in interest income during the quarter, up 24% from a year ago. Interest expenses also increased, rising 19% to ₹1,165 crore, but the higher lending income meant net interest income (NII) expanded 31% to ₹820 crore from ₹625 crore in Q1 FY26. Other income was almost unchanged at ₹244 crore.

City Union Bank’s operating profit came in at ₹581 crore, marking a 29% increase over the same quarter last year. Net interest margin improved to 3.78%, compared with 3.54% a year ago.

Business growth remained healthy through the quarter. Advances rose 25% year-on-year to ₹67,645 crore, while deposits increased 21% to ₹79,342 crore.

As of 30 June, 2026, the bank's total business stood at ₹1.47 lakh crore, up 23% from the previous year. Around 80% of its loan book continued to come from the retail, agriculture and MSME (RAM) segment, including non-agriculture gold loans.

What Changed In Asset Quality?

The lender also reported lower bad loans during the quarter. Gross non-performing asset (NPA) improved to 1.73% from 1.91% in the March quarter, while net NPA eased to 0.61% from 0.68%.

On an absolute basis, gross NPAs declined to ₹1,170 crore from ₹1,273 crore in the previous quarter. Net NPAs also fell to ₹405 crore from ₹449 crore. The bank set aside ₹78 crore as provisions during the quarter, lower than ₹120 crore in the preceding quarter, which helped support overall profitability.

City Union Bank Share Price

Investors responded positively to the quarterly performance. City Union Bank shares rose as much as 10% after the results and were trading more than 8% higher at around ₹239 during Tuesday's session. With the latest rally, the stock has gained roughly 10% so far this year.

However, on Wednesday, City Union Bank shares opened 2.43% lower at ₹232.

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