City Union Bank Reports ₹342.37 Crore Net Profit for Q1 FY27; Asset Quality Improves Significantly

Private sector lender City Union Bank Limited has announced its unaudited financial results for the first quarter ended June 30, 2026. The bank delivered a strong bottom-line performance, posting a net profit of ₹342.57 crore (₹34,257.32 lakh) for Q1 FY27, reflecting a 11.98% year-on-year growth compared to ₹305.92 crore (₹30,591.95 lakh) in the corresponding quarter of the previous fiscal year (Q1 FY26).

Financial Performance & Income Trajectory

Revenue & Interest Income

Total Income: Stood at ₹2,228.57 crore (₹2,22,857.44 lakh) for Q1 FY27, up 20.51% compared to ₹1,849.20 crore (₹1,84,920.40 lakh) in Q1 FY26, and higher than ₹2,146.09 crore (₹2,14,609.37 lakh) reported in the preceding quarter ended March 31, 2026.

Interest Earned: Reached ₹1,984.99 crore (₹1,98,498.50 lakh) during the quarter under review, compared to ₹1,605.33 crore in Q1 FY26 and ₹1,855.52 crore in Q4 FY26.

Interest/Discount on Advances: Formed the core of interest income at ₹1,629.06 crore (₹1,62,906.45 lakh), up from ₹1,290.22 crore in Q1 FY26.

Income on Investments: Contributed ₹314.81 crore (₹31,480.85 lakh), compared to ₹286.41 crore in Q1 FY26.

Interest on RBI Balances & Inter-Bank Funds: Stood at ₹40.95 crore (₹4,095.32 lakh).

Other Income: Recorded at ₹243.59 crore (₹24,358.94 lakh), remaining consistent with ₹243.88 crore in Q1 FY26.

Operating Profitability & Expenses

Interest Expended: Totaled ₹1,164.85 crore (₹1,16,485.10 lakh) for Q1 FY27, compared to ₹980.04 crore in Q1 FY26.

Operating Expenses: Came in at ₹483.15 crore (₹48,315.02 lakh), comprising ₹234.74 crore in employee costs and ₹248.41 crore in other operating overheads.

Operating Profit: Before provisions and contingencies, operating profit surged 28.75% year-on-year to ₹580.57 crore (₹58,057.32 lakh), up from ₹450.92 crore in Q1 FY26.

Provisions & Contingencies: Provisions (other than tax) stood at ₹78.00 crore (₹7,800.00 lakh), compared to ₹70.00 crore in Q1 FY26 and ₹120.00 crore in Q4 FY26.

Profit Before Tax (PBT): Reached ₹502.57 crore (₹50,257.32 lakh) for the quarter, compared to ₹380.92 crore in Q1 FY26.

Tax Expenses: Stood at ₹120.00 crore (₹12,000.00 lakh).

Asset Quality & Capital Strength

City Union Bank demonstrated substantial improvement in asset quality metrics during the quarter:

Gross NPA Ratio: Reduced significantly to 1.73% (Gross NPAs of ₹1,169.75 crore) as of June 30, 2026, compared to 2.99% (₹1,616.98 crore) as of June 30, 2025, and 1.91% as of March 31, 2026.

Net NPA Ratio: Dropped to 0.61% (Net NPAs of ₹405.20 crore), down from 1.20% (₹534.55 crore) in Q1 FY26 and 0.68% in Q4 FY26.

Capital Adequacy Ratio (CRAR): Maintained a robust capital position under Basel III at 27.73%, well above regulatory requirements.

Return on Assets (RoA): Stood at 1.57% on an annualised basis.

Earnings Per Share (EPS): Basic EPS for Q1 FY27 increased to ₹3.86 per equity share of face value Re. 1 each (unannualised), compared to ₹3.09 in Q1 FY26 and ₹3.53 in Q4 FY26. Diluted EPS stood at ₹3.85.

Net Worth: Expanded to ₹10,905.23 crore (₹10,90,523.13 lakh) as of June 30, 2026, compared to ₹9,685.51 crore as of June 30, 2025.

Segment Revenue & Earnings Breakdown

1. Retail Banking

Segment Revenue: ₹1,321.65 crore (comprising ₹1.20 crore from Digital Banking and ₹1,320.45 crore from Other Retail Banking)

Segment Profit: ₹259.81 crore

Segmental Assets: ₹50,372.00 crore

2. Corporate / Wholesale Banking

Segment Revenue: ₹475.99 crore

Segment Profit: ₹100.65 crore

Segmental Assets: ₹19,748.85 crore

3. Treasury Operations

Segment Revenue: ₹408.30 crore

Segment Profit: ₹200.61 crore

Segmental Assets: ₹25,412.57 crore

4. Other Banking Operations

Segment Revenue: ₹22.63 crore

Segment Profit: ₹19.50 crore

Total balance sheet size stood at ₹98,388.60 crore (₹98,388.60 lakh) as of June 30, 2026, up from ₹79,799.52 crore as of June 30, 2025.

Shares of City Union Bank Limited was last trading in BSE at Rs. 215.80 as compared to the previous close of Rs. 228.70. The total number of shares traded during the day was 365162 in over 4018 trades.

The stock hit an intraday high of Rs. 228.45 and intraday low of 214.80. The net turnover during the day was Rs. 79770014.00.

Source : Equity Bulls

Keywords

CityUnionBank INE491A01021 CUB Q1FY27 Q1FY2027 ResultUpdate