City Union Bank will participate in an investor conference organized by Nirmal Bang Institutional Equities on August 10, 2026, in Mumbai. This engagement provides investors and analysts with a direct channel to discuss the bank’s performance and outlook, ensuring transparency ahead of any potential market movements or strategic updates.

The disclosure was made pursuant to Regulation 30 read with Para A Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was issued on August 05, 2026, by Venkataramanan S, Company Secretary & Compliance Officer, and submitted to both the National Stock Exchange of India Ltd. and BSE Ltd.

Conference Details

The event is scheduled for August 10, 2026, in Mumbai. Nirmal Bang Institutional Equities is organizing the session, which aims to facilitate dialogue between the bank’s management and institutional stakeholders. A copy of the invitation has been hosted on the bank's official website for public access.

Regulatory Compliance

The bank cited specific regulatory frameworks to justify the disclosure. By referencing Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, City Union Bank ensures that material information regarding investor interactions is disseminated fairly to all market participants simultaneously. This prevents information asymmetry between institutional investors who might attend such events and retail shareholders.

Corporate Governance

The notice was signed by Venkataramanan S, serving as the Company Secretary & Compliance Officer. The document bears the circular stamp of the Admin. Office in Kumbakonam, confirming its authenticity. The registered office remains at 149, T.S.R. (Big) Street, Kumbakonam, Thanjavur District, Tamil Nadu.

What the Numbers Show

While this announcement contains no financial metrics, the timing of the conference is significant. Investor conferences often precede quarterly results or major strategic announcements. Stakeholders should monitor subsequent filings for any material developments discussed during the August 10 session, as these could influence market sentiment regarding the bank’s future trajectory.

City Union Bank reported a record net profit of ₹383 crore for the quarter ended June 30, 2026, marking a 25% year-on-year increase from ₹306 crore in Q1FY26. This profitability gain was driven by a 31% surge in net interest income (NII) to ₹820 crore, supported by robust growth in advances and deposits while maintaining a stable net interest margin (NIM) of 3.78%. The performance coincides with significant asset quality improvements, as gross non-performing assets (NPAs) fell to 1.73% from 2.99% a year ago, reducing provisioning pressures despite higher absolute provisions.

The Board of Directors approved the unaudited standalone financial results on July 28, 2026, in compliance with Regulation 30 and Schedule III Part A of the SEBI Listing Regulations, 2015. The results were subjected to a limited review by the Joint Statutory Central Auditors, P.B. Vijayaraghavan & Co and M. Srinivasan & Associates. The bank also disclosed that it has discontinued the maintenance of the Investment Fluctuation Reserve (IFR) following RBI circulars, transferring the existing amount to the General Reserve during the quarter.

Financial Performance Highlights

Interest income rose 24% to ₹1,985 crore, reflecting higher yields on advances and investments. Non-interest income remained flat at ₹244 crore. Operating expenses grew by 16% to ₹483 crore, lagging behind revenue growth and contributing to a decline in the cost-to-income ratio from 48.12% to 45.42%. Provisions increased to ₹198 crore from ₹145 crore in the prior year period.

Asset Quality and Balance Sheet Growth

The bank’s asset quality showed marked improvement during the quarter. Gross NPAs declined to ₹1,170 crore (1.73% of advances) from ₹1,617 crore (2.99%) in Q1FY26. Net NPAs reduced to ₹405 crore (0.61%) from ₹635 crore (1.20%). The provision coverage ratio stood at 85% including technical write-offs and 65% excluding them.

Balance sheet growth was robust, with total business rising 23% to ₹1,46,987 crore. Deposits increased by 21% to ₹79,342 crore, while advances grew by 25% to ₹67,645 crore. The current account savings account (CASA) ratio improved, with CASA balances reaching ₹21,094 crore, up 18% from ₹17,954 crore. The cost of deposits decreased to 5.56% from 5.95%, aiding margin stability.

Management Commentary and Outlook

During the earnings conference call held on July 28, 2026, Managing Director and CEO R. Vijay Anandh highlighted that the bank achieved consistent double-digit credit growth for the past two years. He noted that MSME lending remains the core strength, with the bank targeting credit growth 2-3% above industry averages. Gold loans and secured retail products serve as additional enhancers, though the MSME proportion will continue to dominate the loan book.

Anandh stated that the bank’s long-term average numbers for PAT, ROA, and NIM remain valid. He guided that NIM is expected to hover between 3.65% and 3.70% in the coming quarters, citing potential slight increases in deposit costs due to repricing benefits ending. The return on assets (ROA) is projected to be in the range of 1.55% to 1.65%, supported by operational efficiency and better asset quality.

What the Numbers Show

The divergence between the 31% rise in net interest income and the 21% increase in total income highlights the primary driver of profitability: core lending activities rather than fee-based services. While non-interest income remained stagnant at ₹244 crore, the expansion in NII was fueled by a 25% growth in advances outpacing deposit growth of 21%, leading to an average credit-deposit ratio of 86%. Furthermore, the reduction in gross NPA ratios from 2.99% to 1.73% alongside a stable NIM of 3.78% indicates genuine asset quality improvement rather than just provisioning strategies. The decline in cost of deposits to 5.56% from 5.95% demonstrates effective liability management, allowing the bank to maintain yield on advances at 9.79% without compressing margins significantly.