Operating profit before provisions and contingencies grew 28.76% YoY to Rs 580.57 crore. Total provisions for the quarter stood at Rs 198 crore, compared with Rs 145 crore in the corresponding quarter last year.

Net interest income (NII) surged 31% YoY to Rs 820 crore from Rs 625 crore in Q1 FY26, while net interest margin (NIM) improved to 3.78% from 3.54% a year earlier.

The bank continued to witness healthy business growth, with total deposits rising 21% YoY to Rs 79,342 crore as of 30 June 2026. Total advances increased 25% YoY to Rs 67,645 crore, while CASA deposits grew 18% to Rs 21,094 crore.

Asset quality strengthened further during the quarter. Gross non-performing assets (GNPA) declined to 1.73% as of 30 June 2026 from 2.99% a year earlier, while net NPA improved to 0.61% from 1.20%. The provision coverage ratio (PCR) stood at 85% including technical write-offs and 65% excluding technical write-offs.

The bank also maintained a strong capital position, with its capital adequacy ratio under Basel III norms at 21.73% and Tier-I capital adequacy at 20.97% as of 30 June 2026, well above the regulatory requirement.

City Union Bank is an old sector private sector bank with 1000 branches across 17 states and 3 Union territories. It is a scheduled commercial Bank regulated by the Reserve Bank of India. The bank positioned itself as a banker to SMEs, Agri and Traders apart from all other banking activities.