City Union Bank Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript City Union Bank Ltd filed with BSE on 01 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
City Union Bank reported 25% year-on-year credit growth for Q1 FY27, with advances rising to Rs. 67,645 crores and deposits at Rs. 79,342 crores, up 21%. Operating profit grew 29% to Rs. 581 crores and PAT grew 25% to Rs. 383 crores, both described as the highest in the bank's history, while gross NPA fell to 1.73% and net NPA to 0.61%. Management discussed margin trends, cost of funds, gold loan and MSME growth drivers, and utilisation levels during the question and answer session.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Advances: Rs. 67,645 crores (1QFY27)
p. 4
“our advances had increased to Rs. 67,645 crores from Rs. 54,020 crores in 1QFY26”
R. Vijay Anandh, page 4 of the filed PDF · View the filing
Deposits: Rs. 79,342 crores (1QFY27)
p. 5
“Our deposits stood at Rs. 79,342 crores for 1QFY27 as compared to Rs. 65,734 crores in 1QFY26, registering a growth of 21%”
R. Vijay Anandh, page 5 of the filed PDF · View the filing
Average CASA: Rs. 20,062 crores (1QFY27)
p. 5
“The average CASA grew by 22% in 1QFY27 to Rs. 20,062 crores compared to Rs. 16,478 in the corresponding period last year”
R. Vijay Anandh, page 5 of the filed PDF · View the filing
CD ratio: 85% (1QFY27)
p. 5
“Our CD ratio for this quarter is at 85%, which is the level we indicated in our last call as well”
R. Vijay Anandh, page 5 of the filed PDF · View the filing
Gross NPA: 1.73% (1QFY27)
p. 5
“Our Gross NPA has reduced to 1.73% in 1QFY27”
R. Vijay Anandh, page 5 of the filed PDF · View the filing
Net NPA: 0.61% (1QFY27)
p. 5
“the Net NPA percentage is to 0.61% in 1QFY27 while the Net NPA was at 1.20% in 1QFY26”
R. Vijay Anandh, page 5 of the filed PDF · View the filing
PCR with technical write-offs: 85% (1QFY27)
p. 6
“For the 1QFY27, PCR provision coverage ratio with technical write-offs stood at 85% which has improved from 79% during the corresponding period last year”
R. Vijay Anandh, page 6 of the filed PDF · View the filing
Interest income: Rs. 1,985 crores (1QFY27)
p. 6
“Our interest income had grown by 24% in 1QFY27 and increased to Rs. 1,985 crores from Rs. 1,605 crores in 1QFY26”
R. Vijay Anandh, page 6 of the filed PDF · View the filing
Yield on advances: 9.79% (1QFY27)
p. 6
“Our yield on advances stood at 9.79% for the current quarter, which is equal to our 4QFY26 level of almost 9.80%”
R. Vijay Anandh, page 6 of the filed PDF · View the filing
Cost of deposits: 5.56% (1QFY27)
p. 6
“Our cost of deposits stood at 5.56%, marginally lower than 5.60% in the previous quarter (i.e., 4QFY26), due to repricing benefits”
R. Vijay Anandh, page 6 of the filed PDF · View the filing
NIM: 3.78% (1QFY27)
p. 6
“Our NIM for 1QFY27 stood at 3.78%”
R. Vijay Anandh, page 6 of the filed PDF · View the filing
Operating profit: Rs. 581 crores (1QFY27)
p. 7
“Our operating profit had grown by 29% and stood at Rs. 581 crores compared to Rs. 451 crores in corresponding period last year”
R. Vijay Anandh, page 7 of the filed PDF · View the filing
PAT: Rs. 383 crores (1QFY27)
p. 7
“We had achieved a PAT growth of 25% and our PAT stood at Rs. 383 crores in 1QFY27”
R. Vijay Anandh, page 7 of the filed PDF · View the filing
Cost-to-income ratio: 45.42% (1QFY27)
p. 7
“Our cost-to-income ratio for 1QFY27 have reduced to 45.42% from 46.15% in 4QFY26”
R. Vijay Anandh, page 7 of the filed PDF · View the filing
ROA: 1.57% (1QFY27)
p. 7
“The ROA is in tune with our long-term average and it is at 1.57% in 1QFY27 compared to 1.55% in the corresponding period last year”
R. Vijay Anandh, page 7 of the filed PDF · View the filing
Total slippages: Rs. 195 crores (1QFY27)
p. 5
“On the asset quality front, for the current quarter, the total slippages are around Rs. 195 crores, while the total recovery is Rs. 206 crores, consisting of Rs. 182 crores of live NPA and Rs. 24 crores of technically written-off accounts”
R. Vijay Anandh, page 5 of the filed PDF · View the filing
Treasury gains: Rs. 52 crores (Q1 FY27)
p. 13
“The total treasury gains are around Rs. 52 crores for the current quarter. Last Q4, it was Rs. 29 crores”
R. Vijay Anandh, page 13 of the filed PDF · View the filing
ECLGS disbursed: Rs. 800 crores (cumulative to date)
p. 13
“Last quarter, it was Rs. 200 crores, and till today, we are at Rs. 800 crores, and it's pretty decent”
R. Vijay Anandh, page 13 of the filed PDF · View the filing
Average LTV on gold loans: 62.07% (current)
p. 21
“So, when we see this market going up for the next, say, two, three weeks, then we think to increase the rate”
R. Vijay Anandh, page 21 of the filed PDF · View the filing
LCR: 150% (1QFY27)
p. 23
“We are at 150%.”
R. Vijay Anandh, page 23 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
NIM — 3.65% to 3.70% · next few quarters
stated conditionally by R. Vijay Anandh
p. 6
“Hence, we expect largely the NIM to be in the range of 3.65% to 3.70% in the next few quarters”
R. Vijay Anandh, page 6 of the filed PDF · View the filing
Credit growth — 2%-3% over industry credit growth · FY27
stated firmly by R. Vijay Anandh
p. 4
“With respect to advances, we should be 2%-3% over and above the credit growth of the industry”
R. Vijay Anandh, page 4 of the filed PDF · View the filing
ROA — 1.55 plus · FY27
stated firmly by R. Vijay Anandh
p. 7
“ROA is expected to be in our current level of 1.55 plus”
R. Vijay Anandh, page 7 of the filed PDF · View the filing
Cost-to-income ratio — 47% to 48% · FY27
stated firmly by R. Vijay Anandh
p. 7
“Our cost-to-income ratio will remain in the range of 47% to 48% for FY27”
R. Vijay Anandh, page 7 of the filed PDF · View the filing
Exit ROA — 1.60% to 1.65% · exit of FY27
stated as an aspiration by R. Vijay Anandh
p. 12
“So, with 1.60%, 1.65% ROA, I think that's the number which we are looking at in terms of the exit ROA”
R. Vijay Anandh, page 12 of the filed PDF · View the filing
Credit cost — 0.40 · steady state
stated as an aspiration by R. Vijay Anandh
p. 10
“If you see credit cost at a steady state, we should be around 0.40.”
R. Vijay Anandh, page 10 of the filed PDF · View the filing
Slippages — Rs. 700 crores to Rs. 750 crores · this year
stated conditionally by R. Vijay Anandh
p. 10
“I think we are on Rs. 700 crores to Rs. 750 crores of the number which we discussed”
R. Vijay Anandh, page 10 of the filed PDF · View the filing
ECLGS portfolio — Rs. 2,000 crores to Rs. 2,500 crores
stated conditionally by R. Vijay Anandh
p. 13
“So, we expect ECLGS to be in the range of Rs. 2,000 crores to Rs. 2,500 crores totally for this under the scheme”
R. Vijay Anandh, page 13 of the filed PDF · View the filing
Cost of deposits — 5.60% to 5.70% · going forward
stated conditionally by R. Vijay Anandh
p. 22
“Going forward also, probably it may be in the range of 5.60% to 5.70% and the borrowing cost of present status of Rs. 94 crores to continue for the next two quarters”
R. Vijay Anandh, page 22 of the filed PDF · View the filing
Cost-to-income ratio — less than 45% · next three to four years
stated as an aspiration by R. Vijay Anandh
p. 23
“our aspiration is to be less than 45%”
R. Vijay Anandh, page 23 of the filed PDF · View the filing
Gold loan share of book — 31%-32%
stated as an aspiration by R. Vijay Anandh
p. 9
“I think we are at 30%, 31% as we speak today, and we expect it to be in the same range of 31%, 32%”
R. Vijay Anandh, page 9 of the filed PDF · View the filing
MSME disbursal — Rs. 3,500 crores per quarter
stated firmly by R. Vijay Anandh
p. 17
“On disbursement, our average MSME disbursal is around Rs. 3,500 crores per quarter”
R. Vijay Anandh, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said gold loan and MSME pricing would hold steady and deposit costs would remain contained, keeping NIM around 3.70-3.75% over the long term.
Answered by R. Vijay Anandh
Asked by Parth Gutka: What are the levers for margin improvement given stagnant lending yields?
p. 8
“we should be there with 3.70%, 3.750% range on a long term”
R. Vijay Anandh, page 8 of the filed PDF · View the filing
Management said its gold loan share is branch-driven and expected to stay around 31-32%, with no major competitive threat perceived.
Answered by R. Vijay Anandh
Asked by Subramanian K.: How does the bank view rising competition in gold loans?
p. 9
“I think we are at 30%, 31% as we speak today, and we expect it to be in the same range of 31%, 32%. We don't expect it to go up and hence we don't see much threat to gold loans from the competition at these junctures”
R. Vijay Anandh, page 9 of the filed PDF · View the filing
Management guided to steady state credit cost near 0.40% and slippages of Rs. 700-750 crores, with recovery continuing to exceed slippages.
Answered by R. Vijay Anandh
Asked by Sonal Minhas: What credit cost and slippage levels should be expected over one to two years?
p. 11
“Yes, 0.40 for credit cost and 1.20%, 1.30% should be the number. Yes, you are broadly right.”
R. Vijay Anandh, page 11 of the filed PDF · View the filing
Management explained staff cost increases from July would push cost-to-income toward 47%, but other income recovery could support exit ROA of 1.60-1.65%.
Answered by R. Vijay Anandh
Asked by Jayant Kharote: Why has ROA guidance been set at 1.55% rather than 1.65%, given branch and OPEX trends?
p. 12
“So, largely the branch opening is done, as you rightly said, but our hikes are from July”
R. Vijay Anandh, page 12 of the filed PDF · View the filing
Management attributed the fee income shortfall to processing fee, suit recovery and insurance income lines and expected recovery through the year.
Answered by R. Vijay Anandh
Asked by Pritesh Bumb: Why did fee income decline this quarter and what will drive its recovery?
p. 15
“Probably the factors contributing to other income would be processing fee and suit recovery and the insurance income. I think if these three can deliver, we will be as per the plan.”
R. Vijay Anandh, page 15 of the filed PDF · View the filing
Management said SMA levels dropped sharply from prior years, reducing capital consumption from expected credit loss provisioning.
Answered by R. Vijay Anandh
Asked by Jai Mundhra: How has the SMA book trended over the past year and what does it mean for ECL provisioning?
p. 18
“we used to be around 10.78% in September '24. We dropped down to 7.12% in June '25. From 7.12%, we are at 2.85%”
R. Vijay Anandh, page 18 of the filed PDF · View the filing
Management said it prioritises supporting genuine agricultural borrowing needs over maximizing yield and would only adjust pricing modestly if peers moved first.
Answered by R. Vijay Anandh
Asked by Jai Mundhra: Why not raise gold loan pricing given strong demand and low elasticity?
p. 19
“Predominantly in agricultural sector, we are really there for the genuine need for the customers who want to harvest.”
R. Vijay Anandh, page 19 of the filed PDF · View the filing
Management said competition is not a driver of utilization since the bank is the primary banker for most clients, and that utilization is a function of business needs.
Answered by R. Vijay Anandh
Asked by Punit Bahlani: Is competition driving lower utilization levels in MSME lending?
p. 16
“So, competition cannot be a function for utilization, that too when you are a primary banker for majority of your book.”
R. Vijay Anandh, page 16 of the filed PDF · View the filing
Management attributed the move to utilization levels and some customers exiting over yield pressure, with the bank unwilling to cut rates to retain them.
Answered by R. Vijay Anandh
Asked by Pushpit Jain: Why did the large industry loan book surge sequentially?
p. 21
“they wanted to exit, we said fine. So, those customers exited us because of the yield pressure. We do not want to reduce the rate”
R. Vijay Anandh, page 21 of the filed PDF · View the filing
Risks flagged
Rising term deposit rates could push up cost of deposits and compress NIM in coming quarters
p. 6
“With term deposit rates on the verge of rising due to high demand, we expect the cost of deposits may slightly increase in the next few quarters, which will impact NIM levels by around 5 bps”
R. Vijay Anandh, page 6 of the filed PDF · View the filing
MSME utilization levels declined during the quarter
p. 10
“the unutilized portion which our utilization used to be 73% on an average, this has come down to 70%.”
R. Vijay Anandh, page 10 of the filed PDF · View the filing
Some customers exited the large industry book due to yield pressure
p. 21
“the rates were not conducive, they wanted to exit, we said fine.”
R. Vijay Anandh, page 21 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.