Q3 2026 City Union Bank Ltd Earnings Call Transcript
Key Points
- City Union Bank Ltd (BOM:532210) achieved a significant milestone by surpassing the INR10,000 crore net worth mark.
- The bank reported a 21% year-on-year growth in advances, reaching INR60,892 crores, marking the highest credit growth since FY80.
- The bank's asset quality improved with gross NPA reducing to 2.17% from 3.36% year-on-year, and net NPA decreasing to 0.78%.
- Interest income grew by 19% in Q3 FY26, driven by strategic repricing of deposits and a stable yield on assets.
- The cost-to-income ratio improved slightly, standing at 48.56% for Q3 FY26, indicating efficient cost management.
- Provisioning increased, with NPA provisions rising to INR74 crores from INR40 crores in the previous quarter.
- The bank's yield on assets slightly decreased to 9.73% from 9.81% year-on-year.
- Despite the growth in interest income, the yield on MSME loans remained flat, indicating limited pricing power.
- The bank's operating expenses increased, driven by higher technology expenses and salaries.
- The gold loan portfolio saw a 2% decline on a quarter-on-quarter basis, attributed to seasonal factors.
Ladies and gentlemen, good day, and welcome to the City Union Bank Limited Q3 nine months FY26 earnings conference call hosted by AMBIT Capital Private Limited (Operator Instructions)
I now hand the conference over to Mr. Jignesh Shial from AMBIT Capital Private Limited. Thank you, and over to you, sir.
Yeah. Thank you, Rutuja, and good evening, everyone. On behalf of AMBIT Capital, I would like to thank the management of City Union Bank for allowing us the opportunity to host Q3 FY26 and nine months FY26 earnings call. We have along with us Dr. N. Kamakodi, MD and CEO; Mr. R. Vijay Anandh, Executive Director; Mr. V. Ramesh, Executive Director; Mr. J. Sadagopan, CFO; and the management team of City Union Bank.
I'll now hand over to call to Mr. D. N. Kamakodi, MD and CEO of City Union Bank for opening remarks. Over to you, sir.
Good evening,
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