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Earnings Call Transcript

City Union Bank Earnings Call Transcript: Key Takeaways

City Union Bank reported strong 1QFY27 results with 25% PAT growth to ₹383 Cr and 24% interest income growth. Focus remains on secured lending, particularly MSME and Gold Loans, maintaining industry-leading asset quality.

Guidance and delivery
Management target Net Profit 25.0% FY27
Highlights
Revenue growth24% interest income growth YoY.
MarginsNIM at 3.78%; guided to hover between 3.65% and 3.70%.
Order bookMSME disbursal at ~₹3,500 Cr per quarter; ECLGS potential ₹2,500 Cr.
Demand visibilityStrong consumption-driven demand in MSME, textile, and auto sectors.
Management confidenceHigh; citing consistent double-digit growth and robust asset quality.

Growth

Advances grew 25% YoY to ₹67,645 Cr; Deposits rose 21% YoY to ₹79,342 Cr. Operating profit increased 29% YoY.

Outlook

Guidance: Advances growth 2-3% above industry; NIM range 3.65-3.70%; ROA 1.55% to 1.65%; Cost-to-income 47-48% for FY27.

Risks

Margins may face temporary pressure (5 bps) from rising term deposit rates; West Asia crisis impact being monitored.

Last quarter's promises, checked

Delivered

  • Guided high teen growth → delivered 24% business growth (= BEAT)
  • Guided slippage ₹700-750Cr → delivered ₹199Cr in Q4 (= BEAT)
  • Guided ROA ~1.5% → delivered 1.56% (= BEAT)

Partly delivered

  • Guided NIM holding up → delivered 3.74% vs 3.60% FY25 (= BEAT but sequential Q4 3.87% vs Q3 3.89% was flat)

Missed

  • Guided cost-to-income 48-50% → delivered 47.93% (= BEAT/MISS - actually outperformed efficiency target)
Source

Earnings Call Transcript filed with BSE, NSE: CUB. Summary written with AI assistance from the document.

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City Union Bank Ltd: key numbers

Share price
₹225.57
Market cap
₹22,349 Cr
Revenue (annual)
₹6,870 Cr
Net profit (annual)
₹1,326 Cr
P/E (TTM)
15.9×Sector 22.0×
Promoter holding
0.00%+0.00% QoQ
FII holding
18.65%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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