City Union Bank rallies after Q3 PAT rises 16% YoY to Rs 332 cr

City Union Bank surged 6.16% after reporting a standalone net profit of Rs 332.16 crore, up 16.14% YoY, on the back of a 17.22% rise in total income to Rs 2,001.03 crore in Q3 FY26 compared with Q3 FY25.

Net interest income (NII) rose 28% to Rs 752 crore in the December 2025 quarter, compared to Rs 588 crore in Q3 FY25. For Q3 FY26, NIM was at 3.89% as against 3.58% in the corresponding period last year.

Profit before tax (PBT) grew 15.6% year on year (YoY) to Rs 417.16 crore in the quarter ended 31 December 2025.

The bank's operating profit before provisions and contingencies jumped 18% to Rs 513 crore in the December 2025 quarter, compared to Rs 436 crore recorded in Q3 FY25.

The bank made a provision of Rs 468 crore as of 31 December 2025, as against Rs 402 crore in the corresponding period last year.

On the asset quality front, the gross non-performing assets (GNPA) were at Rs 1,320 crore as of 31 December 2025, down 20.03% as against Rs 1,693 crore as of 31 December 2024. The ratio of gross NPA stood at 2.17% as of 31 December 2025, compared to 3.36% as of 31 December 2024. The ratio of net NPA stood at 0.78% as of 31 December 2025, compared with 1.42% as of 31 December 2024.

The banks capital adequacy as of 31 December 2025, as per Reserve Bank of India (RBI) guidelines on Basel III norms, is 20.13%, and Tier-1 capital adequacy was 19.18%, well above regulatory requirements.

Total deposits of the bank had increased by 21.01% and increased to Rs 70,516 crore in Q3 FY26 from Rs 58,271 crore in the corresponding period last year. The CASA portion stood at 27% of total deposits. The cost of deposits reduced to 5.57% in Q3 FY26 from 5.71% in Q3 FY25.

Total advances increased by 21% for Q3 FY26 to Rs 60,892 crore from Rs 50,409 crore in Q3 FY25. The average credit deposit ratio stood at 84%. The yield on Advances for Q3 FY26 improved to 9.73% compared to 9.66% in Q2 FY26.

City Union Bank is an old private sector bank with 902 branches across 18 states and four Union territories. It is a scheduled commercial bank regulated by the Reserve Bank of India. It is professionally managed and governed. City Union Bank has contemporary technology and infrastructure, including ATMs, net banking, mobile banking, e-wallets, and social media banking for personal as well as business banking customers.

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