City Union Bank LimitedQ1 FY27 Results & Financial Update

City Union Bank Limited: Q1 FY27 standalone results and company financials – total income ₹2,228.57 Cr, PAT ₹382.57 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.

NSE: CUBPublished 22 Sep 2026Reported 28 Jul 2026Updated 5 Oct 2026~6 min read
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
Total income change+20.5%Year-on-year
Profit after tax change+25.1%Profit after tax · year-on-year
EPS₹3.86Reported Q1 FY27

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Quarterly Results AnalysisExplore City Union Bank Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.

Quarter overview

Quarterly earnings analysis

01

City Union Bank reported a strong operational and financial performance for the first quarter of fiscal year 2027, driven by robust loan growth and higher net interest income.

02

Total income for Q1 FY27 reached Rs. 2,228.57 crore compared to Rs. 1,849.20 crore in the corresponding quarter of the previous year, reflecting solid expansion across interest-earning assets.

03

Net interest income (NII) grew by 31% year-on-year to Rs. 8,201 million (approx Rs. 820.1 crore), supported by a widening net interest margin (NIM) which improved to 3.78% from previous levels.

04

Profit after tax (PAT) for the quarter rose by 25% year-on-year to Rs. 382.57 crore (Rs. 3,826 million), compared to Rs. 305.92 crore in Q1 FY26, bringing annualized return on assets (ROA) to 1.57%.

05

Total business crossed Rs. 1,46,988 crore, reflecting a 23% year-on-year increase, propelled by advances expanding 25% to Rs. 67,645 crore and deposits growing 21% to Rs. 79,342 crore.

06

Asset quality witnessed continued improvement with Gross NPA moderating to 1.73% and Net NPA declining to 0.61% as of June 30, 2026, alongside a robust Provision Coverage Ratio (PCR) of 85% inclusive of technical write-offs.

07

Capital adequacy remained strong with total Basel III CRAR standing at 21.73%, well above regulatory minimums, providing ample headroom to support future business expansion.

01 · Business model

What does City Union Bank do?

City Union Bank Limited is a private sector scheduled commercial bank operating over a century with roots extending back to its founding as a Swadeshi Bank in 1904.

The bank primarily targets retail and micro, small, and medium enterprises (MSME) through a granular, fully collateralized lending strategy, with MSME advances forming roughly 37% of its total loan portfolio.

The bank operates a pan-India branch network totaling 1,000 branches as of June 30, 2026, spanning across metro, urban, semi-urban, and rural center types, with a historical concentration in Tamil Nadu and southern India.

The economic model focuses on maintaining stable spreads between the yield on advances and the cost of deposits, complemented by diversified non-interest income from fee-based banking, digital channels, and treasury operations.

02 · Historical context

What shaped the business before this quarter

Legacy and Continuity

Established in 1904, City Union Bank has maintained continuous profitability throughout its 122-year history, surviving multiple economic cycles including world wars, the Great Depression, and recent pandemics.

03 · Financial snapshot

Current quarter vs the two useful baselines

MetricQ1 FY27Year-agoPrevious quarter
Total income₹2,228.57 Cr₹1,849.20 Cr₹2,146.09 Cr
Profit before tax₹502.57 Cr₹380.92 Cr₹459.56 Cr
Profit after tax₹382.57 Cr₹305.92 Cr₹359.56 Cr
EPS₹3.86₹3.09₹3.63

04 · Earnings & margin drivers

What drove earnings and margins

What drove net interest income and earnings

Interest Income Growth

Interest earned on advances, investments, and balances grew to Rs. 1,985.0 crore in Q1 FY27 from Rs. 1,605.3 crore in Q1 FY26, driven by a 25% year-on-year expansion in total advances.

Net Interest Income Expansion

Net interest income expanded by 31% year-on-year to Rs. 8,201 million (Rs. 820.1 crore), supported by higher interest yields and disciplined deposit pricing.

Other Income Composition

Other income stood stable at Rs. 2,436 million in Q1 FY27 compared to Rs. 2,439 million in Q1 FY26, comprising commission, fees, securities trading gains, recovery from written-off accounts, and ATM sharing fees.

NIM, spread, funding cost and credit cost

Net Interest Margin (NIM)

NIM improved to 3.78% in Q1 FY27, reflecting effective management of yields on interest-earning assets relative to the cost of funds.

Yields and Cost of Funds

Yield on funds increased to 8.14% during the quarter, while the cost of funds was maintained at 4.78%, preserving healthy lending spreads.

Credit Costs and Provisions

Total provisions and contingencies for Q1 FY27 were Rs. 198.0 crore, which included Rs. 120.0 crore for tax expenses and Rs. 60.0 crore for bad debt provisions.

05 · Loan growth, sanctions & disbursements

How the lending book is moving

Granular Advances Portfolio

Total advances grew 25% year-on-year to Rs. 67,645 crore as of June 30, 2026, led by strong traction in MSME advances (Rs. 24,973 crore), agriculture (Rs. 11,185 crore), and non-agri gold loans (Rs. 11,470 crore).

Low Concentration Risk

The bank maintains a granular asset profile where advances to the top 20 group borrowers constitute 6.68% and top 20 individual borrowers account for 6.42% of total advances.

Deposit Growth

Total deposits rose 21% year-on-year to Rs. 79,342 crore, with CASA deposits growing 18% to Rs. 21,094 crore, representing a CASA ratio of approximately 26.6%.

06 · Portfolio mix & lending exposure

Where the loan book is concentrated

Segments and products

Retail Banking Segment

Retail banking remains the largest segment contributor, generating segment revenue of Rs. 1,321.65 crore and segment results of Rs. 259.81 crore during Q1 FY27.

Corporate and Wholesale Banking

Corporate and wholesale banking recorded segment revenue of Rs. 475.99 crore and segment results of Rs. 100.65 crore for the quarter.

Treasury Operations

Treasury operations contributed segment revenue of Rs. 408.30 crore and segment results of Rs. 200.61 crore in Q1 FY27.

Geography and market mix

Domestic Operations

The bank operates entirely within a single domestic geographical segment, with its 1,000 branches distributed across 252 metro, 242 urban, 300 semi-urban, and 206 rural centers.

07 · Asset quality & capital strength

How credit quality and balance-sheet capacity changed

Asset quality, stages and credit risk

Asset Quality Improvement

Gross NPA improved to 1.73% (Rs. 1,169.74 crore) and Net NPA improved to 0.61% (Rs. 405.19 crore) as of June 30, 2026.

Provision Coverage Ratio

Provision Coverage Ratio (PCR) stood strong at 85% including technical write-offs and 65% excluding technical write-offs as of June 30, 2026.

Restructured Standard Assets

Total outstanding restructured standard borrower accounts declined to 566 accounts amounting to Rs. 446.4 million as of June 30, 2026.

08 · Strategy & portfolio evolution

How the lending mix and strategic agenda are changing

Digital Offerings and Partnerships

The bank launched an all-in-one mobile banking application offering over 50 online services, alongside co-branded credit cards with Chennai Super Kings (CSK) and Sunrisers Hyderabad (SRH), and specialized credit cards like SalarySe Level Up.

Technological Automation

The bank received recognition for its digital initiatives, including the 'Best AI Adoption - BFSI' award at the AI Summit and Award 2026 and 'Innovative Bank of the Year' at the India Banking Summit & Awards 2026.

09 · Reported developments

What changed operationally

Profitability Growth

Net profit for Q1 FY27 increased by 25% year-on-year to Rs. 382.57 crore, accompanied by a solid ROA of 1.57% and ROE of 14.37%.

Capital Adequacy

Basel III Capital Adequacy Ratio (CRAR) remained robust at 21.73%, with Tier-I CRAR at 20.97%.

10 · Pressure points & risks

What is not going smoothly

Regulatory Penalty

The bank noted a penalty of Rs. 10.10 lakh levied by the RBI regarding non-compliance with certain provisions on priority sector loan accounts and reporting of self-help group member-level data to credit information companies.

11 · Items worth noticing

The line items that can distort a quick read

Investment Fluctuation Reserve Transfer

Pursuant to RBI circular instructions dated May 18, 2026, the bank discontinued the maintenance of the Investment Fluctuation Reserve (IFR) and transferred the existing IFR amount of Rs. 16,567.99 lakh to General Reserves during Q1 FY27.

12 · Funding & balance sheet

How funding, liquidity and capital support the loan book

Capital allocation & funding

Borrowings Profile

Total borrowings stood at Rs. 5,170.3 million (Rs. 517.03 crore) as of June 30, 2026, compared to Rs. 1,746.0 million in the same period last year.

13 · Beyond the numbers

What changed beyond the numbers

Reported update

Strategic Partnerships and Co-Branded Cards

City Union Bank continued its sports marketing associations as the Official Credit Card Partner of Chennai Super Kings and Official Banking Partner of Sunrisers Hyderabad, offering exclusive merchandise, matchday discounts, and loyalty benefits.

14 · Previous-quarter changes

What changed since the previous quarter

Sequential Performance

PAT increased sequentially from Rs. 359.56 crore in Q4 FY26 to Rs. 382.57 crore in Q1 FY27, while total income moved from Rs. 2,146.09 crore to Rs. 2,228.57 crore.

15 · Key Q&A

The quarter, answered directly

What does City Union Bank do?

City Union Bank Limited is a private sector scheduled commercial bank operating over a century with roots extending back to its founding as a Swadeshi Bank in 1904.

What is the clearest takeaway from Q1 FY27?

City Union Bank reported a strong operational and financial performance for the first quarter of fiscal year 2027, driven by robust loan growth and higher net interest income.

What drove earnings or loan-book movement?

Interest earned on advances, investments, and balances grew to Rs. 1,985.0 crore in Q1 FY27 from Rs. 1,605.3 crore in Q1 FY26, driven by a 25% year-on-year expansion in total advances.

What mattered most for margins, funding or credit cost?

NIM improved to 3.78% in Q1 FY27, reflecting effective management of yields on interest-earning assets relative to the cost of funds.

What changed operationally beyond the headline numbers?

Gross NPA improved to 1.73% (Rs. 1,169.74 crore) and Net NPA improved to 0.61% (Rs. 405.19 crore) as of June 30, 2026.

What are the main pressure points disclosed for the quarter?

The bank noted a penalty of Rs. 10.10 lakh levied by the RBI regarding non-compliance with certain provisions on priority sector loan accounts and reporting of self-help group member-level data to credit information companies.

16 · Scenario calculator

Earnings sensitivity: what if growth and margins change?

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17 · Next filing checkpoints

What the next disclosure can confirm or change

  1. 01

    Asset Quality Metrics: Monitor the ongoing trajectory of Gross and Net NPA ratios and slippages across retail and MSME loan portfolios.

  2. 02

    Margin and Cost Trends: Track Net Interest Margin (NIM) sustainability and credit cost movements amidst fluctuating interest rate environments.

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