Shares of City Union Bank rose over 2% in early trade on Thursday, August 1, after the lender reported a strong set of numbers for the quarter ended June 30, 2025. The stock climbed to ₹219.21, up 2.30%, following the bank’s Q1 earnings announcement.
The Tamil Nadu-based private sector lender posted a 16% year-on-year rise in net profit at ₹306 crore, compared to ₹264 crore in the same quarter last year. The profit growth was supported by higher interest income and improved operating metrics.
Total income rose to ₹1,849 crore in the first quarter of FY26, from ₹1,580 crore a year earlier. Interest income increased to ₹1,605 crore from ₹1,388 crore, reflecting better loan growth and asset yields. Operating profit also registered a healthy jump, rising to ₹451 crore from ₹373 crore last year.
City Union Bank’s asset quality improved significantly during the quarter. Gross non-performing assets (NPAs) dropped to 2.99% of gross advances from 3.88% a year ago, while net NPAs declined to 1.2% from 1.87%.
However, provisions and contingencies rose to ₹70 crore in Q1FY26, compared to ₹39 crore a year earlier. Meanwhile, the capital adequacy ratio of the bank marginally dipped to 23.1%, from 23.58% in the previous year.
Investors responded positively to the results, especially the improvement in asset quality and steady profitability.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult financial advisors before making investment decisions.
