Shares of City Union Bank jumped more than 4% after the lender reported a solid financial performance for the fourth quarter of FY26, supported by strong growth in net interest income and profitability.
For the January–March quarter, the bank posted a net profit of ₹360 crore, marking a 24.9% increase compared to ₹288 crore in the same period last year. The rise in earnings was driven by steady growth in core banking operations and improved asset quality.
Net interest income (NII), which reflects the bank’s core lending business, grew 30.9% year-on-year to ₹786 crore from ₹600 crore. Operating profit also saw a notable increase of 31.4%, coming in at ₹580 crore versus ₹441 crore in the year-ago quarter.
Provisions for the quarter stood at ₹120 crore, higher than ₹96 crore in the previous quarter and ₹78 crore in the corresponding period last year, indicating a cautious approach toward risk management despite improving asset quality trends.
On the asset quality front, the bank reported a sequential improvement. Gross non-performing assets (GNPA) declined to 1.9% from 2.2% quarter-on-quarter, while net non-performing assets (NNPA) improved to 0.68% from 0.78% in the previous quarter.
In addition to the earnings performance, the bank announced a bonus share issue in the ratio of 1:3, meaning shareholders will receive one bonus share for every three shares held. The move is aimed at enhancing liquidity and rewarding existing investors.
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