City Union Bank Ltd

City Union Bank Limited reported strong performance in Q2FY27, with total business crossing INR 150,000 crores. Advances grew 26% YoY to INR 72,442 crores, driven by consistent credit growth of 25% over the last three quarters. MSME loans increased by INR 2,600 crores, while secured retail loans rose by INR 1,134 crores. Gold loan advances grew by INR 1,062 crores. The bank emphasized disciplined lending practices, including adherence to RBI's LTV norms, with SMA accounts at 0.67% of total advances. Deposits grew 21% YoY to INR 83,893 crores, with a CASA ratio of 27%. Asset quality improved, with Gross NPA at 1.44% and Net NPA at 0.48%, down from previous quarters. Interest income rose 27% to INR 2,092 crores, while NIM increased to 3.87% from 3.78% in Q1FY27. Operating expenses rose 24% due to wage hikes, but PAT grew 27% to INR 416 crores. The bank guided for NIM in the range of 3.85% to 3.95% for Q3 and Q4, ROA above 1.6%, and cost-to-income ratio between 45% to 47% for FY27. Management highlighted continued focus on secured lending, MSME, and gold loans to sustain growth momentum.

The document highlights strong growth in credit and deposit metrics, improved asset quality, and positive guidance for future performance.