City Union Bank shares post best day in nearly six years after profit rises 25% in March quarter

Shares of City Union Bank rose as much as 8.2%, posting their best single-day gains since August 28, 2020, to hit an intraday high of ₹293.55 on the BSE a day after it reported its January-March quarter earnings. The Kumbakonam-based private sector lender post market hours on Monday said that it earned a net profit of ₹360 crore, marking an increase of 25% from ₹288 crore in the same period last year.

The bank's net interest income or difference between interest earned on loans and expended on deposits advanced 31% to ₹786 crore in the fourth quarter of financial year 2025-26 compared with ₹601 crore in the year-ago period.

The bank's provisions for bad loans rose sharply by 54% to ₹120 crore compared with ₹78 crore a year earlier.

The private lender's asset quality improved significantly as its gross non-performing assets (NPA), as a percentage of total advances, improved to 1.91% as against 3.09% in the previous financial year.

Its net NPA softened to 0.68% as against 1.25%.

Total deposits of the bank had rose by 23% to ₹78,308 crore in FY26 from ₹63,526 crore in corresponding period last year. CASA portion stood at 28% to total deposits and cost of deposits decreased to 5.70% in FY26 from 5.85% in FY 25, City Union Bank said.

Its total advances increased by 26% for FY26 to ₹66,699 crore from ₹53,066 crore in FY25. Average credit deposit ratio stood at 85%. The yield on advances for Q4FY26 marginally improved to 9.80% compared to 9.73% in Q3FY26, the bank added.

At the end of financial year 2026, the bank had a total branch network of 949 branches with maximum branches in Tamil Nadu.

As of 11:43 am, City Union Bank shares traded 3% higher at ₹279, outperforming the NIFTY50 index which was down 0.1%.