City Union Bank LimitedQ2FY27 Results & Financial Update
City Union Bank Limited: Q2FY27 standalone results and company financials – revenue ₹2,092.25 Cr, PAT ₹415.91 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore City Union Bank Q2FY27 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
City Union Bank posted solid operational expansion for the second quarter of fiscal 2027, propelled by healthy loan-book momentum and improved net interest margins.
Net interest income (NII) grew 31% year-on-year to Rs. 8,728 million (INR 872.8 crore), supported by a widening spread between deposit costs and asset yields.
Total business volume—comprising aggregate deposits and advances—surged 23% year-on-year to reach Rs. 1,563,346 million (INR 1,563.346 billion), with gross advances crossing Rs. 724 billion.
Asset quality continued to exhibit structural improvement, as gross non-performing assets (GNPA) ratio moderated to 1.44% and net non-performing assets (NNPA) ratio narrowed to 0.48%.
Provision coverage ratio including technical write-offs stood robust at 82%, reflecting conservative provisioning against potential credit costs.
Operating profitability benefited from operating leverage, with operating profit climbing 40% year-on-year to Rs. 6,609 million, translating to a reported PAT of Rs. 4,159 million for Q2 FY27.
01 · Business model
What does City Union Bank do?
City Union Bank Limited is an established private sector bank with a heritage spanning over 120 years, having roots as a Swadeshi Bank founded in Kumbakonam, Tamil Nadu.
The bank operates a granular lending model with a primary focus on retail, agriculture, and Micro, Small, and Medium Enterprises (MSMEs), which together form the core of its advances portfolio.
Its distribution footprint encompasses a pan-India network of 1,002 branches spanning metro, urban, semi-urban, and rural centers, maintaining strong historical concentration in South India while expanding nationally.
The economic model centers on traditional deposit mobilization, fee-based commission and exchange income, and collateralized lending, underpinned by a conservative risk framework.
02 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Total income | ₹2,442.46 Cr | ₹1,912.26 Cr | ₹2,228.57 Cr |
| Profit before tax | ₹540.91 Cr | ₹413.59 Cr | ₹502.57 Cr |
| Profit after tax | ₹415.91 Cr | ₹328.59 Cr | ₹342.57 Cr |
| EPS | ₹4.20 | ₹3.32 | ₹3.86 |
03 · Earnings & margin drivers
What drove earnings and margins
What drove net interest income and earnings
Interest income on loans rose 29% year-on-year to Rs. 17,129 million, driven by a 26% expansion in total advances.
Other income advanced 35% year-on-year to Rs. 3,501 million, bolstered by commission, exchange, and brokerage (CEB) charges of Rs. 1,520 million and treasury income of Rs. 365 million.
Other income also captured strong recoveries in written-off accounts, contributing Rs. 1,616 million compared to Rs. 1,030 million in Q2 FY26.
NIM, spread, funding cost and credit cost
NIM improved to 3.87% during Q2 FY27 compared to 3.63% in Q2 FY26, driven by optimized cost of deposits and stable asset yields.
Cost of deposits eased to 5.56% from 5.71% a year ago, while the overall cost of funds edged down to 4.74%.
Cost-to-income ratio improved significantly to 45.96% in Q2 FY27 from 49.16% in Q2 FY26, demonstrating positive operating leverage.
04 · Loan growth, sanctions & disbursements
How the lending book is moving
Advances remain highly granular, with exposure to the top 20 group borrowers at roughly 7% and top 20 individual borrowers at approximately 6% of advances.
Total business expanded 23% year-on-year to Rs. 1,563,346 million, underpinned by deposit growth of 21% to Rs. 838,931 million.
05 · Portfolio mix & lending exposure
Where the loan book is concentrated
Segments and products
MSME advances reached Rs. 280,844 million, continuing to constitute roughly 39% of the total loan book.
Agriculture advances (including jewelry loans) stood at Rs. 119,374 million, while total gold loans across agricultural and non-agricultural categories reached Rs. 217,258 million, representing 30% of gross advances.
Commercial real estate advances stood at Rs. 41,636 million, while retail advances (excluding non-agri jewelry loans) recorded Rs. 67,414 million.
Geography and market mix
Out of 1,002 total branches, 301 are situated in semi-urban areas, 253 in metro centers, 242 in urban locations, and 206 in rural regions.
Tamil Nadu remains the core geographic concentration with 590 branches, supplemented by regional networks across Karnataka, Andhra Pradesh, Kerala, and other states.
06 · Asset quality & capital strength
How credit quality and balance-sheet capacity changed
Capital adequacy, net worth and balance-sheet capacity
Total Basel III CRAR stood at a robust 21.26% as of September 30, 2026, well above regulatory thresholds, with core Tier-1 CRAR at 20.43%.
07 · Strategy & portfolio evolution
How the lending mix and strategic agenda are changing
The bank unveiled 12 digital initiatives at the Global Fintech Fest 2026 in Mumbai, including the new 'All In One' Mobile Banking App, RuPay Passkey, and advanced fraud-prevention integrations.
Acted as the official credit card partner of Chennai Super Kings (CSK) and official banking partner of Sunrisers Hyderabad (SRH) to issue co-branded credit cards.
08 · Reported developments
What changed operationally
Net profit for Q2 FY27 expanded 27% year-on-year to Rs. 4,159 million, accompanied by a 40% rise in operating profit.
Gross NPA dropped to 1.44% and Net NPA to 0.48%, reflecting continuous resolution and lower net additions.
09 · Funding & balance sheet
How funding, liquidity and capital support the loan book
Capital allocation & funding
Total borrowings stood at Rs. 52,804 million, while total customer deposits reached Rs. 838,931 million, anchored by granular term deposits below Rs. 3 crore accounting for 48% of the deposit mix.
Current and savings account (CASA) deposits grew 14% year-on-year to Rs. 223,502 million.
10 · Beyond the numbers
What changed beyond the numbers
Reported update
Digital Banking Unit Inauguration
Inaugurated a new digital banking unit at the ZOHO Corporation campus in collaboration with industry leadership.
Reported update
Industry Awards
Received multiple accolades at the 4th ICC Emerging Asia Banking Conclave & Awards 2026, including Winner for Best Asset Quality Management.
11 · Previous-quarter changes
What changed since the previous quarter
Advances grew sequentially from Rs. 717,427 million in Q1 FY27 (June 2026) to Rs. 724,415 million in Q2 FY27, while PAT advanced from Rs. 342.57 million.
12 · Key Q&A
The quarter, answered directly
What does City Union Bank do?
City Union Bank Limited is an established private sector bank with a heritage spanning over 120 years, having roots as a Swadeshi Bank founded in Kumbakonam, Tamil Nadu.
What is the clearest takeaway from Q2FY27?
City Union Bank posted solid operational expansion for the second quarter of fiscal 2027, propelled by healthy loan-book momentum and improved net interest margins.
What drove earnings or loan-book movement?
Interest income on loans rose 29% year-on-year to Rs. 17,129 million, driven by a 26% expansion in total advances.
What mattered most for margins, funding or credit cost?
NIM improved to 3.87% during Q2 FY27 compared to 3.63% in Q2 FY26, driven by optimized cost of deposits and stable asset yields.
What changed operationally beyond the headline numbers?
Total Basel III CRAR stood at a robust 21.26% as of September 30, 2026, well above regulatory thresholds, with core Tier-1 CRAR at 20.43%.
What should the next disclosure help confirm?
Track the sustainability of GNPA and NNPA ratios near current lows of 1.44% and 0.48%.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Asset Quality Trend: Track the sustainability of GNPA and NNPA ratios near current lows of 1.44% and 0.48%.
- 02
Margin Trajectory: Monitor net interest margin evolution relative to the 3.87% reported in Q2 FY27 amidst shifting deposit cost dynamics.
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