Chennai-headquartered City Union Bank has announced robust financial performance for the third quarter of the fiscal year 2025-26, showcasing significant growth across key metrics. The bank reported a substantial 16% increase in its net profit, which climbed to ₹332 crore, driven by strong operational performance.
Strong Operating Performance Fuels Profit Growth
The bank's operating profit witnessed an impressive 18% rise, reaching ₹513 crore for the quarter ended December 2025. This growth was primarily supported by a healthy increase in both interest and non-interest income streams.
Income Streams Show Robust Expansion
Interest income surged by 19% to ₹1,756 crore, compared to ₹1,479 crore in the corresponding quarter of the previous fiscal year. Non-interest income also registered a positive growth of 7%, amounting to ₹245 crore. Consequently, the net interest income experienced a remarkable 28% growth, standing at ₹752 crore for the quarter.
Significant Improvement in Asset Quality
City Union Bank demonstrated a notable enhancement in its asset quality during the quarter. The gross non-performing assets (NPA) ratio declined to 2.17% as of December 2025, showing improvement from 3.36% a year ago and 2.42% in the preceding September 2025 quarter.
Similarly, the net NPA ratio eased to 0.78%, compared to 1.42% in the year-ago period and 0.90% in the previous quarter. This consistent reduction in NPAs reflects the bank's effective credit management and recovery efforts.
Deposits and Advances Register Healthy Growth
The bank's deposit base expanded by 21% to ₹70,516 crore, while advances also grew at an identical pace of 21%, reaching ₹60,892 crore. This balanced growth in both deposits and advances indicates strong business momentum and customer confidence in the bank's services.
The quarterly results highlight City Union Bank's resilient performance amid evolving market conditions, with improved profitability, strengthened asset quality, and sustained business growth positioning the bank favorably in the competitive banking landscape.
