Shares of City Union Bank rose 5.8% to ₹287 during Tuesday's trading session following the lender's strong fourth-quarter FY26 earnings announcement. According to reports from The Economic Times, the bank posted a 25% year-on-year rise in net profit to ₹360 crore for the quarter ended March 2026, marking the highest quarterly profit in the bank's history. The robust performance was driven by strong growth in profitability and core income metrics.
The bank's Net Interest Income (NII) for the quarter rose 31% to ₹786 crore, compared to ₹600 crore in Q4FY25, as reported by The Economic Times. Gross profit also grew at a similar pace, increasing 31% to ₹580 crore from ₹441 crore a year earlier. For the full financial year FY26, the bank reported an 18% increase in net profit to ₹1,326 crore, compared to ₹1,124 crore in FY25. NII for the year rose 22% to ₹2,830 crore, while operating profit grew 20% to ₹2,014 crore.
According to The Economic Times, total deposits rose 23% year-on-year to ₹78,308 crore, with the CASA ratio at 28%. The cost of deposits eased to 5.70% from 5.85% in FY25. Advances grew 26% to ₹66,699 crore, while the average credit-deposit ratio stood at 85%. Yield on advances improved marginally to 9.80% in Q4FY26 from 9.73% in the previous quarter.
As reported by The Economic Times, Return on assets (RoA) for FY26 stood at 1.56%, remaining broadly in line with the bank's long-term average. Return on equity (RoE) improved to 13.35% in FY26, up from 12.63% in FY25. The cost-to-income ratio for FY26 was largely stable at 47.93%, compared with 47.77% in the previous financial year. Net Interest Margin (NIM) for FY26 stood at 3.74%, broadly in line with the bank's earlier guidance.
According to The Economic Times, the bank's capital position remained strong, with a capital adequacy ratio of 21.92% under Basel III norms, and Tier-1 capital at 20.82%, both comfortably above regulatory requirements set by the Reserve Bank of India. Provisions during the quarter stood at ₹688 crore as of March 31, 2026, higher than ₹555 crore reported in the corresponding period last year.
