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City Union Bank Ltd

| Audited Financial Results for Q4 and Year Ended March 31, 2026

BULLISH SENTIMENT

Report Source

⬤27th Apr 26

Summary : City Union Bank reports strong FY26 financial performance with increased profit, reduced NPAs, and capital distribution through dividend and bonus shares.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Interest Expended FY26: Rs. 403992.46 Lakhs (vs Rs. 351832.92 Lakhs in FY25).
  2. Operating Expenses FY26: Rs. 185443.01 Lakhs (vs Rs. 153514.95 Lakhs in FY25).
  3. Provisions (other than tax) FY26: Rs. 34300.00 Lakhs (vs Rs. 26200.00 Lakhs in FY25).
  4. Total Income FY26: Rs. 790858.57 Lakhs (vs Rs. 673210.49 Lakhs in FY25).
  5. Interest earned FY26: Rs. 686975.50 Lakhs (vs Rs. 583404.26 Lakhs in FY25).
  6. Other Income FY26: Rs. 103883.07 Lakhs (vs Rs. 89806.23 Lakhs in FY25).
  7. Net cash flow from Operating Activities FY26: Rs. 80246 Lakhs (vs Rs. 112830 Lakhs in FY25).
  8. Net cash flow from Financing Activities FY26: Rs. 304191 Lakhs (vs Rs. -266159 Lakhs in FY25).
  9. Cash and Cash equivalents at FY26 end: Rs. 892707 Lakhs (vs Rs. 529054 Lakhs at FY25 end).
  10. Provision of Rs. 272.44 lakh for unhedged foreign currency exposures.
  11. Total exposure of Rs. 35688.20 Lakhs under COVID-19 resolution framework.
  12. Total Assets FY26: Rs. 9702439.52 Lakhs (vs Rs. 7762321.49 Lakhs in FY25).
  13. Deposits FY26: Rs. 7830795.39 Lakhs (vs Rs. 6352595.39 Lakhs in FY25).
  14. Advances FY26: Rs. 6587517.28 Lakhs (vs Rs. 5208125.46 Lakhs in FY25).
  15. Reserves & Surplus FY26: Rs. 1049055.85 Lakhs (vs Rs. 939251.86 Lakhs in FY25).
  16. Capital Adequacy Ratio (Basel III) FY26: 21.92% (vs 23.75% in FY25).
  17. Gross NPA FY26: 1.91% (vs 3.09% in FY25).
  18. Net NPA FY26: 0.68% (vs 1.25% in FY25).
  19. Return on Assets (Annualized) FY26: 1.56% (vs 1.55% in FY25).
  20. No loans acquired/transferred through assignment.
  21. No Special Mention Accounts acquired/transferred.
  22. No NPAs transferred to Asset Reconstruction Companies.
  23. Report presents Standalone Audited Financial Results.
  24. No subsidiaries/associates/joint ventures, so consolidated not applicable.

Corporate Overview

  1. Domestic Segment (India)
  2. Bank providing financial services in India.
  3. Neutral, factual reporting of board decisions and financial results.
  4. Treasury
  5. Corporate/Wholesale Banking
  6. Retail Banking (Digital and Other Retail)
  7. Other Banking Operations

Risk Factors

  1. Basel III Pillar 3 disclosures unaudited.
  2. Potential impact of new Labour Codes.
  3. Liability from unhedged foreign currency exposures.
  4. Reliance on branch auditors' reports.

Key Drivers

  1. Strong income and profit growth.
  2. Significant reduction in Non-Performing Assets.
  3. Recommended dividend and bonus share issue.
  4. Robust capital adequacy ratio maintained.

Auditor’s Report

  1. Unmodified opinion on Standalone Financial Results for Q4 and FY ended March 31, 2026.
  2. Disclosures relating to Pillar 3 under Basel III Capital Regulations (Leverage Ratio, Liquidity Coverage Ratio, Net Stable Funding Ratio) are disclosed on the Bank's website and have not been audited by the auditors.

Board Commentary

  1. Recommended dividend of Rs. 2 per equity share (200%) for FY 2025-26, subject to shareholder approval.
  2. Unhedged foreign currency exposures
  3. Impact of new Labour Codes
  4. No investor complaints pending as of March 31, 2026.
  5. Estimated provision of Rs. 500 Lakhs for New Labour Codes.
  6. Approved issuance of Bonus shares in 1:3 ratio.
  7. Allotted 20,61,528 equity shares in FY26 due to stock options exercise.

Corporate Governance

  1. Audit Committee reviewed and recommended financial results.
  2. Pillar 3 disclosures under Basel III are not audited.

Management Discussion & Analysis

Performance Drivers

  1. Growth in total income and net profit
  2. Reduction in Non-Performing Assets
  3. Increase in deposits and advances

Risk Control Measures

  1. Provision of Rs. 272.44 lakh for unhedged foreign currency exposures
  2. Monitoring developments for New Labour Codes

Critical Risks

  1. Unhedged foreign currency exposures
  2. Impact of new Labour Codes implementation