The Board of Directors of The City Union Bank Limited at its meeting held on July 28, 2026, approved the standalone un-audited financial results for the quarter ended June 30, 2026 (Q1 FY27). The meeting commenced at 12:15 PM and the financial results were approved at 2:21 PM.

Financial Performance Highlights (₹ in lakh)

Income Statement:

  • Interest earned: ₹198,498.50 (Q1 FY27) vs ₹160,532.71 (Q1 FY26) - 23.7% increase
  • Interest on Advances/Bills: ₹162,906.45
  • Income on Investments: ₹31,480.85
  • Interest on balances with RBI: ₹4,095.32
  • Others: ₹15.88
  • Other Income: ₹24,358.94
  • Total Income: ₹222,857.44 vs ₹184,920.40 (Q1 FY26) - 20.5% increase
  • Interest Expended: ₹116,485.10 vs ₹98,004.05 (Q1 FY26)
  • Operating Expenses: ₹48,315.02
  • Employees Cost: ₹23,473.10
  • Other Operating expenses: ₹24,841.92
  • Operating Profit: ₹58,057.32 vs ₹45,091.96 (Q1 FY26)
  • Provisions (other than tax): ₹7,800.00 vs ₹7,000.00 (Q1 FY26)
  • Profit Before Tax: ₹50,257.32 vs ₹38,091.96 (Q1 FY26)
  • Tax Expenses: ₹12,000.00 vs ₹7,500.00 (Q1 FY26)
  • Net Profit: ₹38,257.32 vs ₹30,591.96 (Q1 FY26) - 25.0% increase

Capital Structure:

  • Paid-up equity share capital: ₹9,907.87 lakh (Face value Re.1 each)
  • During the quarter, 43,166 equity shares were allotted pursuant to exercise of stock options by employees
  • During the quarter, 24,76,96,809 equity shares were allotted as bonus shares by capitalizing share premium

Asset Quality:

  • Gross NPA: ₹116,974.10 vs ₹161,698.40 (Q1 FY26)
  • Net NPA: ₹40,519.89 vs ₹63,455.06 (Q1 FY26)
  • Gross NPA Ratio: 1.73% vs 2.99% (Q1 FY26)
  • Net NPA Ratio: 0.61% vs 1.20% (Q1 FY26)
  • Provision Coverage Ratio: 85% (including technical write-off) & 65% (excluding technical write-off)

Capital Adequacy:

  • Capital Adequacy Ratio (Basel III): 21.73% vs 23.10% (Q1 FY26)

Ratios:

  • Return on Assets (Annualized): 1.57% vs 1.55% (Q1 FY26)
  • Basic EPS: ₹3.86 (not annualized) vs ₹3.09 (Q1 FY26)
  • Diluted EPS: ₹3.85 (not annualized) vs ₹3.08 (Q1 FY26)
  • Net Worth: ₹10,90,523.13 lakh

Regulatory and Compliance Matters

The financial results have been reviewed by the Joint Statutory Central Auditors, P.B. Vijayaraghavan & Co and M. Srinivasan & Associates, who issued a limited review report confirming no material misstatements were found, except for Pillar 3 disclosures which were not reviewed.

Key Regulatory Disclosures:

  • RBI levied penalty of ₹10.10 lakh for non-compliance with provisions on 'Priority Sector Loan accounts' and 'Reporting of SHG member level data to CICs' observed during inspection as of March 31, 2025
  • Bank discontinued Investment Fluctuation Reserve (IFR) per RBI circular dated May 18, 2026, transferring existing IFR of ₹16,567.99 lakh to General Reserve
  • Provision of ₹272.14 lakh held for Unhedged Foreign Currency exposures as of June 30, 2026
  • No investor complaints pending as of June 30, 2026
  • No subsidiaries/associates/joint ventures

Loan Portfolio Activities (Q1 FY27):

  • Acquired loans not in default through assignment: Aggregate amount ₹7,470.39 lakh with weighted average residual maturity of 7.72 years
  • No acquisition or transfer of Special Mention Accounts (SMA)
  • No transfer of NPAs to ARCs
  • Recovery Ratings assigned to Security Receipts outstanding: RR1 with book value of ₹7,969.07 lakh
  • No PSLC purchased or sold during the quarter

Segment Reporting (₹ in lakh)

Segment Revenue:

  • Treasury: ₹40,830
  • Corporate/Wholesale Banking: ₹47,599
  • Retail Banking: ₹132,165
  • Digital Banking: ₹120
  • Other Retail Banking: ₹132,045
  • Other Banking Operations: ₹2,263

Segment Results:

  • Treasury: ₹20,061
  • Corporate/Wholesale Banking: ₹10,065
  • Retail Banking: ₹25,981
  • Digital Banking: ₹3
  • Other Retail Banking: ₹25,978
  • Other Banking Operations: ₹1,950

The Bank operates only in the Domestic geographical segment.

Accounting Policies and Notes

  • No change to significant accounting policies except capitalization of fixed assets for ITC reversed under Section 17(4) of GST Act
  • Figures for previous periods have been regrouped/reclassified where necessary
  • EPS figures for comparative periods restated to account for bonus share allotment
  • The Bank follows Defined Contribution pension scheme with no unprovided liability