City Union Bank (CUB) has reported a robust financial performance for the first quarter, with a significant increase in net profit and improved asset quality. The private sector lender's results demonstrate resilience in a challenging economic environment.

Strong Profit Growth

The Kumbakonam-based bank posted a net profit of Rs 306.00 crore for Q1, representing a substantial 16% increase from Rs 264.00 crore in the corresponding period last year. This growth in profitability underscores the bank's effective management and strategic initiatives.

Balance Sheet Expansion

CUB's balance sheet showed impressive growth, with deposits increasing by 20% year-on-year to Rs 65,734.00 crore. Advances also saw a significant rise of 16% to Rs 54,020.00 crore, bringing the total business to Rs 1,19,754.00 crore.

Revenue Performance

The bank's net interest income expanded by 15% to Rs 625.00 crore. Additionally, non-interest income surged by 27% to Rs 244.00 crore, driven primarily by treasury profits of Rs 64.00 crore. This diversification of income sources demonstrates the bank's ability to generate revenue from multiple streams.

Improved Asset Quality

One of the highlights of CUB's Q1 performance was the significant improvement in its asset quality metrics:

• Gross Non-Performing Assets (GNPA) ratio decreased to 2.99% from 3.88% in the previous year.
• Net Non-Performing Assets (NNPA) ratio improved to 1.20% from 1.87% year-over-year.

This reduction in NPAs suggests that the bank's risk management strategies and recovery efforts are yielding positive results.

Financial Highlights

Key Performance Indicators

• Capital Adequacy Ratio: 23.10%
• Return on Assets: 1.55%
• Net Interest Margin: 3.54% (remained stable)
• CASA Deposits: Rs 17,951.00 crore (11% growth)

Operational Efficiency

While the bank's operating expenses increased by 15% to Rs 418.00 crore, this growth was in line with the expansion of its business activities and did not negatively impact overall profitability.

City Union Bank's Q1 results demonstrate its ability to grow profitably while maintaining asset quality. The bank's focus on expanding its presence, improving operational efficiency, and maintaining a strong capital position sets a solid foundation for sustained growth in the coming quarters.

City Union Bank Limited (CUB) has continued its expansion strategy with the opening of a new branch in Latur, Maharashtra, bringing its total branch count to 883. This move underscores the bank's commitment to enhancing its presence and accessibility across India.

New Branch Details

The new branch, which commenced operations on July 31, 2025, is strategically located at:

• Plot No. 10, Northline Complex
• Barshi Road, opposite Hanuman Mandir
• Latur - 413 531, Maharashtra

Recent Expansion Trend

This latest addition follows closely on the heels of the bank's previous expansion just a day earlier. On July 30, 2025, City Union Bank had opened three new branches:

1. Patna, Bihar
2. Rewari, Haryana
3. Malegaon, Maharashtra

These openings had brought the total branch count to 882, indicating a rapid expansion strategy by the bank.

Regulatory Compliance

In line with its obligations as a listed entity, City Union Bank has promptly informed the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) about these branch openings. This disclosure is in compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015.

Implications for Stakeholders

The consistent expansion of City Union Bank's branch network suggests a strong focus on increasing its physical presence across diverse geographical locations. This strategy could potentially lead to:

• Improved accessibility for customers
• Enhanced market penetration
• Increased business opportunities in new regions

As City Union Bank continues to grow its network, stakeholders will be keen to observe how this expansion translates into the bank's overall performance and market position in the coming quarters.