City Union Bank has announced a 13% increase in its net profit, reaching Rs 287.96 crore for the quarter ending March 2025 (Q4FY2025). The bank’s net interest income (NII) grew by 10%, and its core fee income jumped by 59%. The Net Interest Margin (NIM) also improved to 3.60% compared to the previous quarter, showing solid financial performance.
Strong Business Growth
The bank’s overall business grew by 14%, with loans increasing by 14% during Q4FY2025. It also showed improvement in asset quality, meaning the bank’s loans are performing well. The credit-to-deposit ratio remained stable at 83.5%, while the CASA (Current Account and Savings Account) ratio decreased slightly to 28.5% from 30.6% last year.
Better Asset Quality
The bank saw a decline in bad loans, with fresh slippages at Rs 260 crore compared to Rs 201 crore last quarter. The recoveries of bad loans rose to Rs 141.6 crore, and loan upgrades were Rs 96.4 crore. The bank’s provision coverage ratio improved to 78% at the end of March 2025, showing it is well-prepared to cover any losses.
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Business Highlights
- Loan Growth: Retail loans increased by 9%, agriculture loans by 5%, and MSME loans grew by 23%. Corporate credit also saw a 13% rise.
- Deposits: The bank’s total deposits grew by 14%, with current account deposits rising 11% and savings account deposits up by 4%.
- Investments: The bank’s investment book increased by 11%, with the HTM (Held-to-Maturity) book rising by 17%.
Margins and Branch Expansion
City Union Bank showed a slight improvement in margins, increasing its NIM by 2 basis points to 3.60%. It also expanded its network by adding 53 branches and 43 ATMs, bringing the total to 875 branches and 1,736 ATMs by March 2025.
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Quarterly and Annual Financial Performance
- Q4FY2025: The bank recorded a 10% increase in NII, reaching Rs 600.32 crore. Non-interest income also saw a rise, driven by a 59% increase in core fee income and a 53% rise in recoveries and other income.
- FY2025: The bank’s net profit for the year grew by 11% to Rs 1,123.62 crore, and its total income rose by 12% to Rs 3,213.77 crore. The bank’s operating expenses increased by 14%, but provisions (money set aside for potential loan losses) decreased by 8%.
Conclusion
City Union Bank’s financial performance for Q4FY2025 and FY2025 shows healthy growth in profits, loans, and business, along with improved asset quality. The bank’s expansion in branches and ATMs is a positive sign of its growing reach.
