City Union Bank shares gain 6% as Q4 profit rises 25% to Rs 360 crore
Shares of City Union Bank surged nearly 6% on Tuesday after reporting a 25% YoY rise in Q4FY26 net profit to Rs 360 crore, driven by strong NII growth and improved margins. Robust deposit and advance growth, along with stable asset quality and capital position, supported investor sentiment.
Shares of City Union Bank rose 5.8% to Rs 287 during Tuesday's trading session after the lender reported strong fourth-quarter FY26 earnings, driven by robust growth in profitability and core income.
The bank posted a 25% year-on-year rise in net profit to Rs 360 crore for the quarter ended March 2026 (Q4FY26), up from Rs 288 crore in the same period last year. It marked the highest quarterly profit in the bank's history.
Net Interest Income (NII) for the quarter rose 31% to Rs 786 crore, compared to Rs 600 crore in Q4FY25. Gross profit also grew at a similar pace, increasing 31% to Rs 580 crore from Rs 441 crore a year earlier.
Provisions during the quarter stood at Rs 688 crore as of March 31, 2026, higher than Rs 555 crore reported in the corresponding period last year.
For the full financial year FY26, the bank reported an 18% increase in net profit to Rs 1,326 crore, compared to Rs 1,124 crore in FY25. NII for the year rose 22% to Rs 2,830 crore, while operating profit grew 20% to Rs 2,014 crore, in line with overall business expansion.
Net Interest Margin (NIM) for FY26 stood at 3.74%, broadly in line with the bank's earlier guidance.
On the balance sheet front, total deposits rose 23% year-on-year to Rs 78,308 crore, with the CASA ratio at 28%. The cost of deposits eased to 5.70% from 5.85% in FY25.
Advances grew 26% to Rs 66,699 crore, while the average credit-deposit ratio stood at 85%. Yield on advances improved marginally to 9.80% in Q4FY26 from 9.73% in the previous quarter.
Return on assets (RoA) for FY26 stood at 1.56%, remaining broadly in line with the bank's long-term average. Return on equity (RoE) improved to 13.35% in FY26, up from 12.63% in FY25.
The cost-to-income ratio for FY26 was largely stable at 47.93%, compared with 47.77% in the previous financial year.
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The bank's capital position remained strong, with a capital adequacy ratio of 21.92% under Basel III norms, and Tier-1 capital at 20.82%, both comfortably above regulatory requirements set by the Reserve Bank of India.
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