City Union Bank Posts 25% Profit Surge in First Quarter as Total Business Hits ₹1.47 Lakh Cr
The private sector lender reported a net profit of ₹383 crore, driven by robust interest income and a 31% jump in net interest margins. Total advances climbed to ₹67,645 crore while the bank maintained a heavy focus on its RAM portfolio.
Financial Performance and Revenue Growth
City Union Bank (CUB) recorded a significant 25% year-on-year growth in net profit, reaching ₹383 crore for the opening quarter of the fiscal year ending June 30, 2026. This figure marks a substantial increase from the ₹306 crore reported during the corresponding period last year. The profit trajectory was primarily fueled by a 31% surge in net interest income (NII), which rose to ₹820 crore compared to the previous year's ₹625 crore.
The bank's total interest income for the quarter climbed 24%, totaling ₹1,985 crore. While interest expenses also saw a 19% uptick to ₹1,165 crore, the spread remained wide enough to sustain profitability. Conversely, other income streams showed no movement, stagnating at ₹244 crore.
Balance Sheet and Portfolio Composition
As of late June 2026, the bank's total business volume reached ₹1.47 lakh crore, reflecting a 23% expansion from the previous year. This growth was supported by steady performance in both sides of the balance sheet:
- Total Advances: Increased 25% to reach ₹67,645 crore.
- Total Deposits: Grew 21% to settle at ₹79,342 crore.
Focus on RAM and Gold Loans
Management continues to prioritize the Retail, Agriculture, and MSME (RAM) segments. This diversified portfolio, which incorporates non-agriculture gold loans, now represents a dominant 80% of the bank's overall advances. By maintaining this concentration, the lender remains anchored in sector-specific lending while scaling its total asset base.
Source: The Hindu — Home
