City Union Bank ended FY26 on a strong note, reporting a 25% jump in fourth-quarter net profit to ₹360 crore, helped by steady loan growth, improved income and better control over bad loans.
The private sector lender had posted a profit of around ₹288 crore in the same quarter last year. The latest numbers reflect continued stability in the bank’s core business and a gradual improvement in operating performance.
Adding to investor cheer, the bank’s board approved a 1:3 bonus share issue, which means shareholders will receive one extra share for every three shares held. It also recommended a ₹2 per share dividend, subject to shareholder approval.
In a symbolic milestone, City Union Bank also opened its 1,000th branch in Kumbakonam, Tamil Nadu, the town where the bank was founded more than a century ago. The move highlights the lender’s steady expansion strategy while staying rooted in its traditional strong markets.
For the full financial year FY26, the bank reported a net profit of ₹1,326 crore, supported by healthy growth in loans and deposits. Its total advances rose to ₹65,875 crore, while deposits climbed to ₹78,307 crore, indicating continued trust from customers and steady demand for credit.
Asset quality also improved during the year. Gross non-performing assets (GNPA) fell to 1.91%, while net NPA came down to 0.68%. Lower bad loans are a positive sign for banks, as they reduce stress on earnings and improve overall balance sheet strength.
The market reacted positively to the announcement, with City Union Bank shares gaining after the results were released. Investors appeared encouraged by the combination of profit growth, shareholder rewards and stable fundamentals.
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