City Union Bank Ltd (CUB) Q2FY26 Concall Summary - Sep-2025 Qtr
Performance Overview
- The bank reported its highest advance growth in a decade for a second quarter, with a year-on-year increase of 18%, driven by strong momentum in its core MSME segment and a growing secured retail portfolio.
- Asset quality showed significant improvement for the 10th consecutive quarter, with Gross NPA declining to 2.42% and Net NPA falling below the 1% mark for the first time in 46 quarters to 0.90%.
- The trend of recoveries surpassing slippages continued, with total recoveries at 303 crores against slippages of 156 crores, resulting in a negative credit cost for the quarter.
- Net Interest Margin (NIM) expanded sequentially to 3.63% from 3.54%, supported by a faster-than-anticipated reduction in the cost of deposits and the repricing of high-cost borrowings.
- The bank demonstrated stable profitability with a Return on Assets (ROA) of 1.59% and a 15% year-on-year growth in Profit After Tax (PAT), aligning with its long-term performance targets.
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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