City Union Bank Q1 profit jumps 25% to ₹383 cr, NPA slide continues
Net interest income rises 31%, gross NPA improves for 12th straight quarter. New MD's debut quarter sustains momentum.
— 2 earlier stories on City Union Bank Ltd. →What's new
- Net profit up 25% YoY to ₹383 crore, NII up 31% to ₹820 crore.
- Gross NPA falls to 1.73% from 2.99% a year ago, 12th consecutive quarterly decline.
- First quarter under new MD R. Vijay Anandh, who took charge on 1 May.
Why this matters
Asset quality has now improved for twelve straight quarters, with gross NPA nearly cut in half from its level two years ago. Loan growth of 25% and a NIM of 3.78% show the core business is running well. The new management has a high bar to maintain this trajectory.
What we're watching
- Upcoming ₹500 crore QIP and its impact on capital adequacy.
- Whether the trend of sequential NPA decline can be sustained through FY27.
- Any strategic shifts under the new MD's full-year guidance.
The full read
City Union Bank delivered a strong first quarter under new managing director R. Vijay Anandh. Net profit climbed 25% to ₹383 crore and net interest income rose 31% to ₹820 crore. The NIM widened to 3.78% from 3.54%, reflecting the bank's ability to reprice assets faster than deposits. Asset quality continued its multi-year improvement: gross NPA fell to 1.73% from 2.99% a year ago, the twelfth consecutive quarterly drop. Advances grew 25% to ₹67,645 crore and deposits 21% to ₹79,342 crore. This is a routine quarterly release; the numbers extend trends already visible in FY26, when the bank posted a full-year profit of ₹1,326 crore. What comes next is the planned ₹500 crore QIP and whether the new CEO can build on this momentum. So far, so good.
Questions answered
- How did City Union Bank's Q1 profit compare to the previous quarter?
- Q1 net profit of ₹383 crore is up from ₹360 crore in Q4 FY26, showing sequential improvement.
- What drove the 31% growth in net interest income?
- Advances grew 25% and the net interest margin widened to 3.78% from 3.54% a year ago, boosting NII.
- Is the improvement in gross NPA sustainable?
- GNPA has declined for 12 consecutive quarters from 2.99% to 1.73%, and net NPA stands at 0.61%. The trend suggests it should continue.
- What is the significance of this being the first quarter under the new MD?
- R. Vijay Anandh took charge on 1 May, succeeding Dr. N. Kamakodi after 15 years. This result sets the tone for his tenure.
City Union Bank Ltd.
Latest quarter · Mar 2026
Returns & growth
Story so far
All notes on CUB →- 28 Jul 2026 · 2:59 PM IST City Union Bank Q1 profit jumps 25% to ₹383 cr, NPA slide continues
- today City Union Bank Q1 profit jumps 25% to ₹383 cr, NPA slide continues
- 35d ago City Union Bank plans ₹500 cr QIP, sets dividend record date