City Union Bank has reported 13% growth in net profit at Rs 287.96 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted healthy 10% growth in net interest income (NII), while the core fee income of the bank also improved 59% in Q4FY2025. The Net Interest Margin (NIM) of the bank improved on sequential basis to 3.60% in Q4FY2025, while asset marginally from 3.66% in the corresponding quarter of previous year.
On business front, the bank as has posted 14% growth in business with strong 14% surge in loan book. The asset quality of the bank has improved in Q4FY2025. Bank has maintained stable credit to deposit ratio at 83.5% at end March 2025 from 83.5% at end March 2024. However, the CASA ratio of the bank has declined to 28.5% at end March 2025 from 30.6% at end March 2024.

Asset quality improves: The bank has improved asset quality in Q4FY2025.

The fresh slippages of loans stood at Rs 260 crore in Q4FY2025 compared with 201 crore in previous quarter and Rs 219 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 141.6 crore, upgradations at Rs 96.4 crore and the write-off of loans was at Rs 76.3 crore in Q4FY2025.

The standard restructured loan book of the bank declined to Rs 581 crore end March 2025 compared to Rs 663 crore a quarter ago.

Provision coverage ratio improved to 78.00% at end March 2025 compared to 77.00% a quarter ago and 72.00% a year ago.

The capital adequacy ratio of the bank stood at 23.8% with Tier I ratio at 22.7% at end March 2025.

 

Asset Quality Indicators: City Union Bank
	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation
						QoQ	YoY
Gross NPA (Rs Crore)	1638.17	1693.04	1725.50	1806.45	1854.43	-3	-12
Net NPA (Rs Crore)	653.07	701.54	775.02	853.50	898.68	-7	-27
% Gross NPA	3.09	3.36	3.54	3.88	3.99	-27	-90
% Net NPA	1.25	1.42	1.62	1.87	1.97	-17	-72
% PCR	78.00	77.00	75.00	73.00	72.00	100	600
% CRAR - Basel III	23.75	22.26	22.98	23.58	23.73	149	2
% CRAR - Tier I - Basel III	22.70	21.29	21.98	22.55	22.69	141	1
Variation in basis points for figures given in percentages and in % for figures in Rs crore

 

Business Highlights:

Healthy business growth: The business of the bank has increased 14% YoY to Rs 116592 crore end March 2025, driven by 14% surge in advances to Rs 53066 crore. Deposits rose 14% to Rs 63526 crore at end March 2025.

CASA deposits ratio declines: The CASA deposits of the bank increased 6% YoY to Rs 18119 crore at end March 2025. The current account deposits increased 11% to Rs 6074 crore, while saving account deposits moved up 4% to Rs 12045 crore end March 2025. The CASA ratio eased to 28.5% at end March 2025 compared to 30.6% at end March 2024, while improved on sequential basis from 27.7% a quarter ago. The term deposits have increased 18% to Rs 45407 crore end March 2025.

Healthy loan growth: Advances growth was driven by retail loans rising 9% YoY to Rs 14301 crore at end March 2025, while credit to agriculture rose 5% to Rs 8787 crore and MSME 23% to Rs 21670 crore at end March 2025. The corporate credit has moved up 13% to Rs 8309 crore end March 2025.

Investment book of the bank increased 11% YoY to Rs 17346 crore at end March 2025. The AFS book dipped 17% to Rs 2835 crore, while HTM book rose 17% to Rs 14365 crore at end March 2025. The duration of the AFS investment portfolio stood at 4.38 years end March 2025 compared with 0.87 years at end March 2024.

Margins improve qoq, ease yoy: The bank has shown 27 bps YoY jump in cost of deposits to 6.02%, while yield on advances increased 8 bps YoY to 9.93% in Q4FY2025. Thus, the NIM has declined 6 bps YoY, while rose 2 bps qoq to 3.60% in Q4FY2025.

Branch expansion: The bank has added 53 branches and 43 ATMs in Q4FY2025, taking overall tally to 875 branches and 1736 ATM`s end March 2025.

Book value of the bank stood at Rs 127.8 per share at end March 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 118.2 per share at end March 2025.

Quarterly Performance

NII rises on healthy loan growth and nearly stable NIM: Bank has recorded 12% increase in the interest earned at Rs 1532.72 crore, while interest expenses increased 13% to Rs 932.40 crore in Q4FY2025. NII improved 10% to Rs 600.32 crore in the quarter ended March 2025.

Strong growth in the core fee income: Bank has posted strong 59% growth in core fee income to Rs 149 crore, while the recoveries and other income jumped 53% to Rs 76 crore. However, the treasury income declined 18% to Rs 26 crore. The overall non-interest income increased 43% to Rs 251.22 crore in the quarter ended March 2025.

Expenses ratio improves: The operating expenses of the bank increased 11% to Rs 410.58 crore, as other expenses moved up 6% to Rs 214.04 crore, while employee expenses increased 17% to Rs 196.54 crore in Q4FY2025. Cost to income ratio improved to 48.2% in Q4FY2025 compared with 51.3% in Q4FY2024, helping the Operating Profit to increase 25% to Rs 440.96 crore.

Provisions and contingencies rise: The bank has recorded 144% jump in provisions to Rs 78 crore. The loan loss provisions jumped 152% to Rs 78 crore.

Effective tax rate rose to 20.7% in Q4FY2025 from 20.3% in Q4FY2024. Net Profit rose by 13% YoY to Rs 287.96 crore during quarter ended March 2025.

Financial Performance FY2025:

Bank has posted 11% increase in net profit to Rs 1123.62 crore in the year ended March 2025 (FY2025). The net interest income increased 9% to Rs 2315.71 crore, while non-interest income moved up 21% to Rs 898.06 crore, pushing up net total income by 12% to Rs 3213.77 crore in FY2025. The operating expenses increased 14% to Rs 1535.15 crore, while provision and contingencies declined 8% to Rs 262.00 crore, allowing profit before tax to increase 15% to Rs 1416.62 crore in FY2025. The cost-to-income ratio rose to 47.8% in FY2025 compared to 47.1% in FY2024. An effective tax rate increased to 20.7% in FY2025 compared to 17.5% in FY2024. The net profit has moved up 11% to Rs 1123.62 crore in FY2025.

City Union Bank: Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	1532.72	1374.12	12	5834.04	5270.57	11
Interest Expended	932.40	827.54	13	3518.33	3147.10	12
Net Interest Income	600.32	546.58	10	2315.71	2123.47	9
Other Income	251.22	175.23	43	898.06	741.66	21
Net Total Income	851.54	721.81	18	3213.77	2865.13	12
Operating Expenses	410.58	369.99	11	1535.15	1348.39	14
Operating Profits	440.96	351.82	25	1678.62	1516.74	11
Provisions & Contingencies	78.00	32.00	144	262.00	286.00	-8
Profit Before Tax	362.96	319.82	13	1416.62	1230.74	15
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	362.96	319.82	13	1416.62	1230.74	15
Provision for tax	75.00	65.00	15	293.00	215.00	36
PAT	287.96	254.82	13	1123.62	1015.74	11
EPS*(Rs)	15.5	13.8		15.2	13.7
Adj BV (Rs)	118.2	100.2		118.2	100.2
* Annualized on current equity of Rs 74.10 crore. Face Value: Rs 1, Figures in Rs crore
Source: Capitaline Corporate Database

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