CHENNAI: The Tamil Nadu-based City Union Bank (CUB) on Monday reported a 16% rise in net profit from Rs 286 crore in Q3FY25 to Rs 332 crore in the current December quarter, driven by increase in net interest income and improved asset quality. The private sector bank earned a net interest income of Rs 752 crore for Q3 FY26, registering a 28% growth compared to Rs 588 crore in Q3 FY25.
The Kumbakonam-headquartered bank’s deposits and advances grew at over 20% in the current quarter against the same period last year. The deposits grew at 21.01% to Rs 70,516 crore in the current December quarter against Rs 58,271 crore in Q3FY25, whereas advances rose at 20.79% to Rs 60,892 crore against Rs 50,409 crore in Q3FY25, indicating robust business for the bank in the December quarter. The bank’s total business stood at Rs 10.86 lakh crore.
The bank’s CASA grew from Rs 16,132 crore in Q3FY25 to Rs 19,233 crore in Q3FY26. Its NII increased from Rs 588 crore in Q3FY25 to Rs 752 crore in Q3FY26, showing better lending performance.
Recoveries also showed improvement in the December quarter as gross NPA from 2.42% in Q2FY26 to 2.17% in Q3 and 3.36% in Q3FY25. Also, net NPA rate also fell from 0.90% in Q2FY26 to 0.78% Q2FY26 and 1.42% in Q3FY25, reflecting control in slippages.
The bank made a provision of Rs 468 crore as of December 31, 2025, as against Rs 402 crore in the corresponding period last year.
The bank has also allocated Rs 2 crore under “Employees Costs” towards the implementation of the new labour codes. It has 8,573 employees and 901 branches across India.