City Union Bank shares rose nearly 7% to an intraday high of ₹229.48 on the National Stock Exchange on October 29, 2026, after the lender reported a 27% year-on-year increase in quarterly profit.
Key Takeaways
- Profit after tax reached ₹416 crore in the second quarter of fiscal 2027.
- Net interest income rose 31%, while the net interest margin widened to 3.87%.
- Deposits and advances grew, and both gross and net bad-loan ratios fell from a year earlier.
City Union Bank shares follow earnings growth
The share price was an intraday high, not a closing price. The gain followed the results, although the available information does not establish what caused the move.
Net interest income increased to ₹873 crore from ₹667 crore in the same quarter of fiscal 2026. Non-interest income rose to ₹350 crore from ₹259 crore, while the net interest margin improved from 3.63%.
Operating expenses increased to ₹562 crore from ₹455 crore. The bank reported gross profit of ₹661 crore, up from ₹471 crore.
| Item | Details |
|---|---|
| Total deposits | ₹83,893 crore, up from ₹69,486 crore in Q2 FY26 |
| Total advances | ₹72,442 crore, up from ₹57,561 crore in Q2 FY26 |
| Gross non-performing asset ratio | 1.44%, down from 2.42% in Q2 FY26 |
| Net non-performing asset ratio | 0.48%, down from 0.90% in Q2 FY26 |
Deposits, lending and asset quality
The bank’s deposit base and advances both expanded from the prior-year quarter. Its gross and net non-performing asset ratios declined over the same period, while the cost of deposits fell to 5.56% from 5.71%.
City Union Bank said regulatory measures such as FCNR(B) had eased liquidity and helped reduce deposit costs. The Reserve Bank of India includes non-resident deposit schemes among banks’ foreign liabilities in its external-sector statistics.
The bank made a ₹120 crore provision for bad debts, compared with ₹110 crore a year earlier. It also made provisions of ₹27 crore for standard assets and ₹50 crore on a contingent basis.
First-half profit and capital
For the half year ended September 2026, profit after tax rose 26% to ₹798 crore from ₹635 crore a year earlier. Operating profit increased to ₹1,241 crore from ₹922 crore.
The bank’s capital adequacy ratio under Basel III norms was 21.26%, including a Tier 1 capital adequacy ratio of 20.43%.
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