City Union Bank Ltd.PAT up 27%, NIM 3.87%, gross NPA 1.44%

City Union Bank's Q2 FY27 call, held on 28 October 2026, reported total business above ₹1.5 lakh crore, advances of ₹72,442 crore, up 26%, and deposits of ₹83,893 crore, up 21%.

Net profit was ₹416 crore, up 27%, with ROA of 1.62% and a cost-to-income ratio of 45.96%. Net interest margin rose to 3.87% from 3.78%, helped by easier liquidity, and management guides 3.85% to 3.95% for Q3 and Q4. Gross NPA fell to 1.44% and net NPA to 0.48%, with recoveries of ₹317 crore against slippages of ₹175 crore. The bank sold ₹803 crore of mostly old accounts to an asset reconstruction company for ₹131 crore, which lifted other income, and made a ₹50 crore contingent provision.

Gold loans grew to ₹21,777 crore; management said gross NPA in that book was only ₹9.5 crore and it will keep the share at 31% to 32% of advances. Management said 20% deposit growth for two more years is doubtful, and put the ECL transition shortfall at about ₹270 crore, to be absorbed in capital with no P&L impact.