Q2 2026 City Union Bank Ltd Earnings Call Transcript
Key Points
- City Union Bank Ltd (BOM:532210) achieved an 18% year-on-year growth in advances for Q2 FY26, marking the highest credit growth in a decade.
- The bank's deposit growth was strong at 21%, aligning well with credit growth, and stood at INR 69,486 crores for Q2 FY26.
- Asset quality improved significantly with gross NPA reducing to 2.42% from 2.99% in the previous quarter, and net NPA falling below 1% for the first time in 46 quarters.
- The bank's net interest margin (NIM) increased to 3.63% in Q2 FY26, supported by a reduction in the cost of deposits and strategic repricing.
- City Union Bank Ltd secured a USD 150 million commitment from IFC to support MSMEs in transitioning to renewable energy solutions, indicating a strategic focus on sustainable finance.
- The cost to income ratio increased slightly to 49.16% in Q2 FY26 from 48.12% in the previous quarter, indicating rising operational expenses.
- Despite the positive growth, the bank's yield on advances decreased from 9.81% to 9.66% sequentially, reflecting pressure on lending rates.
- The bank's exposure to US exports, although minimal at 0.27% of the loan book, remains a potential risk due to ongoing US tariffs.
- There is uncertainty regarding the impact of ECL provisions on future credit costs, as the bank prepares for new regulatory guidelines.
- The bank's CASA growth, while improving, remains below industry leaders, indicating room for improvement in low-cost deposit mobilization.
The concludes.
Should you need assistance during the conference call, please signal an operator by pressing, then 0 on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Jagnayal.
Thank you and over to you, sir.
Yeah, thank you Omika and good evening everyone. On behalf of Ami A Capital, I would like to thank the management of Cion Bank for allowing us the opportunity to host this Q2F5 26 and H1F526 earnings call.
We have along with us Doctor N. Kamakodi M D N CU Mr. R Vizanan, executive director, Mr. V. Ramesh executive director, and Mr. J. Saha Gopan, CFO.
I will now hand over the call to Doctor Namakodi, MD and CEO of City Union Bank for his opening remarks over to you, sir.
Good evening, everyone.
Hati, welcome to all of you for this
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