City Union Bank Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript City Union Bank Ltd filed with BSE on 04 May 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 Q4 FY26 results marking the final earnings call of Dr. N. Kamakodi as MD and CEO after completing his 15-year tenure, with incoming CEO R. Vijay Anandh set to take charge from May 1, 2026. The bank posted 26% year-on-year advance growth, 23% deposit growth, and a 25% rise in quarterly PAT to Rs 360 crores, alongside gross NPA falling below 2% for the first time in 11 years. Management also announced the opening of the bank's 1,000th branch and outlined plans for FY27 including continued focus on MSME, gold loans and secured retail.
3 statements from this call are not shown because their supporting quotes 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: INR66,698 crores (Q4 FY26)
p. 6
“And it increased to INR66,698 crores from INR53,066 crores in the same period last year.”
N. Kamakodi, page 6 of the filed PDF · View the filing
Deposits: INR78,308 crores (Q4 FY26)
p. 7
“Our deposits had grown by 23% and stood at INR78,308 crores for Q4 financial year '26 as compared to INR63,526 crores in Q4 in the financial year '25.”
N. Kamakodi, page 7 of the filed PDF · View the filing
Gross NPA: 1.91% (Q4 FY26)
p. 7
“Our gross NPA % had reduced to 1.91 % from 2.17 % in the Q3 financial year '26.”
N. Kamakodi, page 7 of the filed PDF · View the filing
Net interest margin: 3.87% (Q4 FY26)
p. 8
“our net interest margin stood at”
N. Kamakodi, page 8 of the filed PDF · View the filing
Net interest margin: 3.74% (FY26)
p. 9
“For the year ended 31st March 2026, the net interest margin is 3.74 %, which is 14 basis points more than the 3.60 % whatever we reported in the financial year 2025.”
N. Kamakodi, page 9 of the filed PDF · View the filing
PAT: INR360 crores (Q4 FY26)
p. 9
“The PAT growth in the current quarter is INR360 crores with 25 % growth compared to INR288 crores in the fourth quarter last financial year.”
N. Kamakodi, page 9 of the filed PDF · View the filing
PAT: INR1,326 crores (FY26)
p. 9
“For the year ended financial year '26, we had INR1,326 crores against INR1,124 crores last year, showing an 18-% improvement in the profit after tax on year-onyear basis.”
N. Kamakodi, page 9 of the filed PDF · View the filing
Operating profit: INR2,014 crores (FY26)
p. 9
“So, our operating profit had grown by about 20 % in financial year '26 and increased to INR2,014 crores compared to INR1,679 crores in financial year '25, which is aligned with the business growth.”
N. Kamakodi, page 9 of the filed PDF · View the filing
Total slippage: INR199 crores (Q4 FY26)
p. 7
“For fourth quarter financial year '26, the total slippage is INR199 crores.”
N. Kamakodi, page 7 of the filed PDF · View the filing
Provision coverage ratio: 84% (Q4 FY26)
p. 8
“For the Q4 financial year '26, provision coverage ratio with technical write-offs stood at 84 %, which improved from 78 % during the corresponding period last year.”
N. Kamakodi, page 8 of the filed PDF · View the filing
Yield on advances: 9.80% (Q4 FY26)
p. 8
“On yield front, our yield on advances stood at 9.80 % in Q4 financial year '26 as compared to 9.73 % in Q3 financial year '26, showing a marginal improvement by 7 basis point.”
N. Kamakodi, page 8 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.
Advance growth — 2% to 3% above industry credit growth · FY27
stated firmly by R. Vijay Anandh
p. 10
“So, in terms of vision for '26-'27, with respect to advances, we should be 2% to 3% over and above the credit growth of the industry.”
R. Vijay Anandh, page 10 of the filed PDF · View the filing
Net interest margin — stable, within 5 to 10 basis points band · FY27
stated conditionally by N. Kamakodi
p. 9
“We expect the stable net interest margin for the current financial year '27 with almost in the same narrow band of maybe 5 to 10 basis points this way or that way, but we hope to maintain that.”
N. Kamakodi, page 9 of the filed PDF · View the filing
Return on assets — 1.65% to 1.67% · end of FY27
stated as an aspiration by R. Vijay Anandh
p. 16
“I think we should exit this year with at least 10 bps more in ROA, so we should be there between 1.65% to 1.67%.”
R. Vijay Anandh, page 16 of the filed PDF · View the filing
Operating expenses — 15% to 18% over last year · FY27
stated firmly by R. Vijay Anandh
p. 11
“We expect an elevated operating expenses for the current year in the range of 15% to 18% over the last year.”
R. Vijay Anandh, page 11 of the filed PDF · View the filing
Fee income to other income — 55% to 60% · FY27
stated firmly by R. Vijay Anandh
p. 11
“With respect to fee income to other income, we will be in the range of 55% to 60% as like last year, contribution of fee income to other income.”
R. Vijay Anandh, page 11 of the filed PDF · View the filing
Credit-deposit ratio — 85% to 87% · FY27
stated conditionally by R. Vijay Anandh
p. 11
“Our endeavour on the CDR continues to be 85% to 87% based on the credit growth.”
R. Vijay Anandh, page 11 of the filed PDF · View the filing
MSME loan mix — 55% to 60% MSME, 30% to 35% JL · FY27
stated firmly by R. Vijay Anandh
p. 11
“MSME proportion will continue to dominate with 55%, 60%, followed by JL with 30% to 35%, and remaining we are planning to do this through secured retail.”
R. Vijay Anandh, page 11 of the filed PDF · View the filing
Third-party business proportion — 1% to 2% · FY27
stated firmly by R. Vijay Anandh
p. 11
“Our business through third-party on an overall bank book we envisage to be only between 1% to 2%.”
R. Vijay Anandh, page 11 of the filed PDF · View the filing
Credit cost — 50% reduction · next 15 years
stated as an aspiration by N. Kamakodi
p. 20
“Now with the improved underwriting based on the AI and the improved LOS and all, my expectation is that at least there has to be 50% reduction in this number in the next 15 years or so.”
N. Kamakodi, page 20 of the filed PDF · View the filing
Branch additions — about 75 branches · FY27
stated firmly by N. Kamakodi
p. 11
“So the point is that, like the same pace of 75 branches is what we expected to grow”
N. Kamakodi, page 11 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 sufficient cushion was built in because the bank never lent close to the peak per-gram gold price, keeping rates well below market highs.
Answered by N. Kamakodi
Asked by Jai Mundhra: How does the bank manage risk in gold loan portfolios given the recent fall in gold prices from peak levels?
p. 12
“So, we have sufficient cushion built into gold loans that were issued when the share price was at that level.”
N. Kamakodi, page 12 of the filed PDF · View the filing
Management attributed the 3 bps increase to tactical fine-tuning of rates to support deposit flow and said not to read too much into small basis point moves.
Answered by N. Kamakodi
Asked by Jai Mundhra: Has cost of deposit bottomed and will it rise going forward?
p. 13
“But what I can say is that there were no significant changes that happened in between and that's why we could almost have an incremental CD ratio of 100 percent.”
N. Kamakodi, page 13 of the filed PDF · View the filing
Management explained that rate transmission was completed by December and that the fixed-rate gold loan book helped hold up incremental yields.
Answered by N. Kamakodi
Asked by Jai Mundhra: How should yield on advances be viewed incrementally given the rate cuts already passed on?
p. 14
“the passing of the rates was completed somewhere in the month of December, if I remember correctly, we specifically gave that, and that part is through.”
N. Kamakodi, page 14 of the filed PDF · View the filing
The incoming CEO guided to an ROA of 1.65% to 1.67% by the end of the coming year, driven by retail income and lower cost-to-income ratio.
Answered by R. Vijay Anandh
Asked by Jai Mundhra: When will ROA move to the next level, such as 1.7-1.8%?
p. 16
“That's the number probably we will plan basis the retail income deliverable and little bit of costto-income coming down.”
R. Vijay Anandh, page 16 of the filed PDF · View the filing
Management said the bank is near its upper comfort band around 30-32% of the book and would only allow minor fluctuations from there.
Answered by N. Kamakodi
Asked by MB Mahesh: Is there an internal upper limit on gold loan proportion and has it changed recently?
p. 17
“See, on gold loan, basically, the 30, 31, 32 itself is like say we are almost at the upper band.”
N. Kamakodi, page 17 of the filed PDF · View the filing
Management said the growth reflects a mix of factors including rising capacity utilization in the economy and units approaching expansion thresholds.
Answered by N. Kamakodi
Asked by MB Mahesh: What is driving MSME loan demand on the ground?
p. 18
“On the MSME front, the growth is because of the combination of all the factors which you mentioned.”
N. Kamakodi, page 18 of the filed PDF · View the filing
Management pointed to SMA numbers and anecdotal feedback from customers and branch managers as the key signals used to judge when to tighten underwriting.
Answered by N. Kamakodi
Asked by MB Mahesh: What would prompt tightening of underwriting filters?
p. 18
“See, one numerical number will be your SMA numbers, first part. Second thing will be the anecdotal feedbacks which you get from the customers.”
N. Kamakodi, page 18 of the filed PDF · View the filing
Management deferred a specific credit cost estimate but cited historical credit cost trends showing improvement, expecting further reduction with better underwriting.
Answered by N. Kamakodi
Asked by Soubir Samadder: What is the expected impact on steady-state credit costs from new ECL regulations?
p. 20
“Now with the improved underwriting based on the AI and the improved LOS and all, my expectation is that at least there has to be 50% reduction in this number in the next 15 years or so.”
N. Kamakodi, page 20 of the filed PDF · View the filing
The incoming CEO said he was convinced after interacting with Dr. Kamakodi and the Board, and felt a cultural and personal fit given his origins in the region.
Answered by R. Vijay Anandh
Asked by Suresh Ganapathy: What made the new CEO decide to join City Union Bank and how does its culture compare to prior organizations?
p. 21
“I think my wavelength, my passion for what I wanted to do, was absolutely matching with where Dr.Kamakodi wants to take this bank to the next level, how he wants to take the bank to the next level.”
R. Vijay Anandh, page 21 of the filed PDF · View the filing
Risks flagged
Potential impact of the U.S.-Iran conflict on asset quality has not yet materialized but is being closely monitored
p. 8
“We are yet to see any impact of U.S. Iran conflict and things like that. We are keeping the fingers cross and closely monitoring the situation.”
N. Kamakodi, page 8 of the filed PDF · View the filing
Divergence between central bank rate cuts and rising bond yields creating market uncertainty
p. 14
“But we had even though we had terrifying fluctuations and signals in the TV panels, the operating level there was absolutely smooth and we did not have any issue, but how long this calm will continue, whether it will continue like this or whether it is a calm before storm, all these things depend upon how long the conflict goes there, whether you will have higher inflation because of the oil prices and things like that.”
N. Kamakodi, page 14 of the filed PDF · View the filing
Possible economic downturn affecting existing MSME customers
p. 19
“Maybe six months down the line if the economic downturn if at all it happens, it is going to affect all the existing customers also.”
N. Kamakodi, page 19 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.