City Union Bank reports 25% profit rise in Q4FY26, approves bonus issue

In FY26, Gross NPA fell to 1.91% from 3.09% a year earlier, while Net NPA dropped to 0.68% this quarter versus 1.25% in FY25.

City Union Bank, a private‑sector lender, announced on Monday a net profit of ₹360 crore for the quarter ended March 2026 (Q4FY26), marking a 25 % rise from ₹288 crore in Q4FY25. Net interest income rose to ₹786 crore, up 31 % year‑on‑year, and represents the bank’s highest quarterly net profit to date.

For FY26, net profit stood at ₹1,326 crore, an 18 % increase over ₹1,124 crore in FY25, while net interest income reached ₹2,830 crore, up 22 % year‑on‑year.

Strong growth in deposits and advances boosted profitability. Deposits rose 23 % YoY to ₹78,308 crore, and the cost of deposits fell to 5.70 % in FY26 from 5.85 % the previous year.

Advances climbed to ₹66,699 crore, a 26 % YoY increase, with the yield on advances edging up to 9.80 % in Q4FY26 from 9.73 % in Q3FY26.

Gross NPA for FY26 fell to 1.91 % from 3.09 % a year earlier, while Net NPA slipped to 0.68 % this quarter versus 1.25 % in FY25. Both GNPA and NNPA have declined sequentially for the last eight quarters.

Net Interest Margin

The Net Interest Margin for FY26 stood at 3.74 %, aligning closely with the bank’s earlier guidance.

The bank proposed a dividend of ₹2 per share (face value ₹1), equivalent to 200 % of paid‑up capital for FY26, pending shareholder approval at the forthcoming AGM.

The Board further approved a bonus issue of one share for every three shares held, subject to shareholder endorsement.

Headquartered in Kumbakonam, the bank inaugurated 13 new branches on Monday, bringing its total network to 1,000 outlets.

Published on April 27, 2026