The bank’s NPAs declined year over year.
| Photo Credit:
The Hindu
City Union Bank on Thursday reported a 16 per cent rise in net profit at ₹306 crore for the quarter that ended June 30, 2025 (Q1 FY26).
The private sector bank crossed ₹300 crore mark in quarterly PAT for the first time in its history.
Net interest income of the bank grew 15 per cent to ₹625 crore. Boosted by treasury profit, non-interest income was also robust.
With targeted efforts by the bank, deposits increased 20 per cent to ₹65,734 crore in the quarter. Advances increased 16 per cent and stood at ₹54,020 crore.
NPAs decline
We rebounded from the growth challenges we saw back in 2023-24 and posted 14 per cent growth in 2024-25 and this momentum is continuing into Q1 of this fiscal, said N Kamakodi, CEO, City Union Bank. “Across all parameters, the first quarter has been good for us,” he added.
The advances growth was accompanied by improvement in asset quality as gross NPA for Q1 FY26 reduced to 2.99 per cent from 3.88 per cent in year-ago period. Net NPA decreased to 1.20 per cent in the current quarter from 1.87 per cent in Q1 FY25.
Net Interest Margin is at 3.54 per cent for Q1 FY26, in line with guidance given earlier.
Published on July 31, 2025
