City Union Bank reports strong Q2 FY26 performance, improved asset quality

City Union Bank reported a 21% year-on-year increase in deposits to INR 694,860 Mn and an 18% growth in advances to INR 575,612 Mn for Q2 FY26. Total business expanded by 20% to INR 1,270,472 Mn, while net profit rose 15% to INR 3,286 Mn. Return on assets stood at 1.59%, with net interest margin at 3.63%.

Asset quality improved significantly, with gross NPA decreasing to 2.42% from 3.54% and net NPA falling to 0.90% from 1.62% compared to Q2 FY25. The bank's capital adequacy ratio (CRAR Basel III) was 21.68%, with Tier I CRAR at 20.71%. Provision coverage ratio stood at 82%.

The bank highlighted its digital innovation at the Global Fintech Fest, unveiling solutions like UPI Circle for IoT device transactions, an AI-powered UPI Help feature, UPI Multi Signatory for joint accounts, and UPI Reserve Pay for credit limit management. Additionally, new features like biometric and Aadhaar-based face authentication for UPI transactions, and cash withdrawal at micro ATMs using UPI QR, were introduced.