City Union Bank Q2 Advances Grow 26% YoY

Deposit Growth: 21% YoY to ₹83,893 crores (from ₹69,486 crores in Q2FY26)
Quarterly Growth: Deposits increased by ₹4,500+ crores (6% QoQ)
CASA Ratio: Remained constant at 27% of total deposits
CD Ratio: Average 86% for Q2FY27
FCNR Mobilization: $69 million under RBI swap ($15 million from new-to-bank customers)

The management provided extensive details on gold lending practices following recent regulatory changes:

LTV Structure: Consumption loans follow RBI's harmonized directions - up to ₹2.5 lakhs: 85% LTV, ₹2.5-5 lakhs: 80% LTV, above ₹5 lakhs: 75% LTV
Actual LTV Practice: Typically 60-65% at onboarding with 5% cushion for margin calls
NPA Classification: Accounts classified as NPA on 91st day after breaching prescribed LTV
SMA Accounts: ₹173 crores outstanding (0.24% of gold advances)
Gross NPA: ₹9.5 crores with only ₹20 lakhs going for auction
Renewal Policy: Only for standard accounts within available LTV headroom; no top-up loans
Geographic Concentration: 96% of gold loan business from Southern India
Average Ticket Size: Agri gold loans - ₹1.90 lakhs, Non-agri gold loans - ₹3 lakhs

Slippages: ₹175 crores in Q2FY27
Recoveries: ₹317 crores total (₹180 crores from live NPA + ₹137 crores from technically written-off)
Gross NPA: Reduced to 1.44% from 1.73% in Q1FY27 (29 bps reduction)
Net NPA: Reduced to 0.48% from 0.9% in Q2FY26
SMA-2: 0.67% of total advances vs 0.94% in Q1FY27 and 1.34% in Q2FY26
PCR: With technical write-off - 82%; Without technical write-off - 67% (from 63% YoY)
NPA Sale: Sold ₹803 crores of NPAs to ARC (₹303 crores collateralized, ₹500 crores without collateral) for consideration of ₹131 crores

Interest Income: Grew 27% YoY to ₹2,092 crores in Q2FY27; 25% growth to ₹4,077 crores for H1FY27
Yield on Advances: 9.85% in Q2FY27 vs 9.79% in Q1FY27
Yield on Investments: 6.56% in Q2FY27 vs 6.42% in Q1FY27
Cost of Deposits: Remained stagnant at 5.56% in Q2FY27
Cost of Funds: Decreased by 4 bps to 4.74% sequentially
NIM: Expanded to 3.87% in Q2FY27 from 3.78% in Q1FY27; 3.83% for H1FY27 vs 3.59% in H1FY26
Other Income: Increased 35% YoY to ₹350 crores in Q2FY27; 18% growth to ₹594 crores for H1FY27
Operating Expenses: Increased 24% YoY to ₹562 crores in Q2FY27
Establishment Expenses: Increased 25% YoY to ₹280 crores due to annual wage hike
Operating Profit: Grew 35% to ₹1,241 crores in H1FY27
Tax Provision: ₹245 crores for H1FY27 vs ₹160 crores YoY
Contingent Provision: ₹50 crores made during quarter for economic uncertainties
PAT: ₹416 crores for Q2FY27 (27% YoY growth); ₹798 crores for H1FY27 (26% YoY growth)

Cost-to-Income Ratio: 45.96% in Q2FY27 vs 49.16% in Q2FY26; 45.71% for H1FY27 vs 48.66% in H1FY26
ROA: 1.62% in Q2FY27 vs 1.59% in Q2FY26; 1.59% for H1FY27 vs 1.57% in H1FY26

Credit Growth: 2-3% above industry level
Deposit Growth: To align with credit growth
NIM: Expected range of 3.85-3.95% for Q3 and Q4
ROA: Expected to move above 1.6%
Cost-to-Income: 45-47% for FY27
ECL Impact: Incremental provision requirement of ₹299.42 crores as of September 30, 2026 (down from ₹445 crores as of March 31, 2025)

Branch Network: Expanded to 1,000+ branches from 800 previously
Verticalization: Implemented for CASA, TASC, government, NRI, and salary accounts
Loan Portfolio Mix: 55% EBLR linked, 33% fixed rate, 12% MCLR
SME Utilization: Improved to 71-72% from 69% last quarter

Gold loan delinquencies minimal with strong recovery patterns
No financing to customers who are NPAs with other institutions
End-use verification emphasized for all gold loans
Deposit growth sustainability acknowledged as challenging
Treasury income affected by movement from mutual funds to interest-earning investments
Tax rate expected to be 21-23% for FY27