City Union Bank (CUB) on Tuesday reported a 25% year-on-year rise in net profit to Rs 382.57 crore for the first quarter of FY27, compared with Rs 305.91 crore in the corresponding period of FY26, driven by robust growth in interest income and improved asset quality.
The Thanjavur-based private sector lender reported net interest income (NII) of Rs 820.10 crore during the June quarter, while other income stood at Rs 243.60 crore.
Deposits increased to Rs 79,342.3 crore at the end of the quarter from Rs 78,308 crore in the preceding quarter, while advances stood at Rs 67,645.40 crore. The bank's total business rose to Rs 1.47 lakh crore, according to regulatory filings.
However, current account and savings account (CASA) deposits declined to Rs 21,094 crore from Rs 21,644.10 crore in the March quarter.
The bank's gross non-performing assets (GNPA) fell to Rs 1,170 crore in Q1FY27 from Rs 1,617 crore a year ago. Consequently, the gross NPA ratio improved to 1.73% from 2.99% in the year-ago period. Net NPA stood at 0.61% during the quarter, compared with 1.20% in Q1FY26.
Operating expenses increased to Rs 483 crore in the June quarter from Rs 418 crore in the corresponding period last year. Net interest margin (NIM) stood at 3.78%, broadly in line with the bank's earlier guidance.
The bank's capital adequacy ratio stood at 21.73% as of June 30, 2026, while its Tier-I capital adequacy ratio was 20.97%, comfortably above regulatory requirements, CUB said in its filing.
Provisions during the quarter rose to Rs 78 crore from Rs 70 crore in the year-ago period. However, on a sequential basis, provisioning declined sharply from Rs 120 crore reported in the March quarter.
