Vijay Anandh, Managing Director and Chief Executive Officer

Private sector lender City Union Bank reported net profit of ₹383 crore in the quarter ended June 2026 (Q1FY27), up 25 per cent YoY, on robust advances growth and improving asset quality. Net interest income for the quarter grew 31 per cent YoY at ₹820 crore for Q1FY27.The bank, which primarily lends in the RAM (Retail, Agri, and MSMEs) segment, saw its total advances rise by 25 per cent in Q1FY27. Advances as of June 30, 2026 stood at ₹ 67,645 crore. Deposits increased by 21 per cent YoY to ₹79,342 crore in Q1FY27, and this largely came from retail deposits, which makes up over 50 per cent of bulk deposits. Net interest margin (NIM) came in at 3.78 per cent for Q1 FY27, broadly in line with the bank’s guidance and up from 3.54 per cent in the same quarter last year.“The growth was in line with our expectation for this fiscal. The growth in advances has come with improving asset quality, and the market has also been good for retail deposit mobilisation,” Vijay Anandh, Managing Director and Chief Executive Officer, City Union Bank, told businessline. “We are on track for about 20 per cent business growth in FY27,” he added. “The government brought in the Emergency Credit Line Guarantee Scheme (ECLGS) scheme at the right time, and has helped manage the working capital stress due to the West Asia war,” he added. CUB has disbursed around ₹800 crore under the current iteration of ECLGS 5.0, he added.Asset quality improvement continued at CUB in Q1FY27. The gross NPA for Q1 FY27 was at 1.73 per cent from 2.99 per cent in Q1 FY26. Net NPA decreased to 0.61 per cent in the current quarter from 1.20 per cent in Q1 FY26. Both GNPA and NNPA have shown sequential decrease in the last 12 quarters, the bank said. Outlook for FY27 is particularly positive from MSMEs in textile sector, Anandh said, noting optimism in the Tirupur cluster for the UK FTAs. FCNR(B) depositsAs for the foreign currency non-resident (FCNR-B) deposits, the small private sector bank has managed to raise around ₹200 crore as it’s constrained without an overseas presence but is offering among the highest rate of 7.1 per cent. “We are in advanced discussions with many banks for the leverage support,” Anandh said.Published on July 28, 2026