Financial Services · NSE: CUB
City Union Bank
Q2 FY27 earnings call · Guided by management
Call held 28 Oct 2026 · Read the filing on NSEFiling
- M.Cap
- ₹23,372Cr
- P/E
- 15.7×
- 1Y return
- +24.96%
- From 52W high
- −5.2%
Highlights are read by AI from the company's filing and can contain mistakes. Check the source page linked to each line.
Share price
Results Q2 FY27, as filed · standalone · ₹ Cr
| Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ | |
|---|---|---|---|---|---|
| Interest earned | 2,092 | 1,653 | +26.6% | 1,985 | +5.4% |
| Net interest income | 873 | 667 | +30.9% | 820 | +6.4% |
| Operating profit | 661 | 471 | +40.4% | 581 | +13.8% |
| Net profit | 416 | 329 | +26.6% | 383 | +8.7% |
| EPS (₹) | 4.19 | 4.41 | -5.0% | 3.85 | +8.8% |
From the company's own results filing on NSE. Net profit is the owners' share. Growth and the dotted lines are worked out from the filed figures.
Guidance
Deposit growth to keep aligning with credit growth
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 9
Deposit growth to keep aligning with credit growth
“Our deposit growth is aligning with credit growth, and it will continue.”
PAT growth expected to continue with business growth and asset quality
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 4
PAT growth expected to continue with business growth and asset quality
“Our PAT growth will continue with business growth and better asset quality.”
Sustaining 20% deposit growth over the next two years called doubtful
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 12
Sustaining 20% deposit growth over the next two years called doubtful
“So 20% in the next two years, I think I would be doubtful, sir. I think it's going to be a challenge for sure.”
More figures from the call
“Our cost-to-income will largely be in the range of 45% to 47% for FY27.”
“Probably going forward, you can roughly assume the range will be 21% to 23%.”
“We foresee 10 bps increase there, sir.”
“And you can roughly imagine or roughly assume it's around INR 275 crores going forward.”
“The bank has made a contingent provision of INR 50 crores during this quarter, specifically designed for unseen economic uncertainties in future. Our endeavour is to build the same in the coming quarters as well going forward and to make the balance sheet stronger.”
“Our ECL impact -- we should have INR 300 crores of ECL impact, totally. That's what our calculation says.”
In short
- 01NIM guided at 3.85% to 3.95% for Q3 and Q4, up from the earlier 3.7% to 3.75% expectation.
- 02Credit growth expected to stay 2% to 3% above the industry.
- 03ROA targeted at about 1.6% to 1.65%; cost-to-income at 45% to 47% for FY27.
- 04Advances grew 26% year on year to INR 72,442 crore; deposits grew 21% to INR 83,893 crore.
- 05Q2 PAT was INR 416 crore, up 27%; a INR 50 crore contingent provision was made.
- 06Gross NPA fell to 1.44% and net NPA to 0.48%; INR 803 crore of loans sold to an ARC for INR 131 crore.
- 07Incremental ECL requirement is about INR 300 crore, to be adjusted against capital, not P&L.
- 08Sustaining 20% deposit growth over the next two years called doubtful.
Segments
MSME: MSME loans up INR 2,600 crore in the quarter to INR 42,862 crore
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 4
MSME: MSME loans up INR 2,600 crore in the quarter to INR 42,862 crore
“Our core strength, MSME, has increased by INR 2,600 crores, that is, from INR 40,262 crores to INR 42,862 crores.”
Secured retail: Secured retail loans up INR 1,134 crore to INR 7,802 crore
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 4
Secured retail: Secured retail loans up INR 1,134 crore to INR 7,802 crore
“And the new segment, secured retail loans, increased by INR 1,134 crores, that is, from INR 6,668 crores to INR 7,802 crores.”
Gold loan: Gold loans up INR 1,062 crore in the quarter to INR 21,777 crore
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 4
Gold loan: Gold loans up INR 1,062 crore in the quarter to INR 21,777 crore
“The gold loan has also increased by INR 1,062 crores during the quarter, from INR 20,715 crores to INR 21,777 crores.”
Gold loan: Non-agri gold loan growth depends on risk assessment
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 17
Gold loan: Non-agri gold loan growth depends on risk assessment
“I will not say it will reduce or go up. If the risk assessment matches with our criteria, we will not hesitate to grow.”
Focus stays on MSME and gold loans plus new avenues
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 9
Focus stays on MSME and gold loans plus new avenues
“As usual, the bank will focus always on MSME, gold loan segment in addition to entering into new avenues to keep the momentum in growth.”
Demand
MSME: MSME line utilisation around 71% to 72%, up from 69%
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 19
MSME: MSME line utilisation around 71% to 72%, up from 69%
“I think utilization is pretty decent in Q2. We would be around 71% to 72%. We were at 69%, if you recall, in the last call, we did.”
Margins and costs
Q2 cost rise from July wage hike; little further rise seen this year
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 15
Q2 cost rise from July wage hike; little further rise seen this year
“I think it is a very normal thing what we always do in the month of July. So we don't see much going up from here for this year.”
Gold loan: Gold loan yield has 5 to 10 bps room as loans renew
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 23
Gold loan: Gold loan yield has 5 to 10 bps room as loans renew
“Maybe 5, 6 bps, yes, 5, 10 bps, we have a room for the customers who are closing the loan and getting a new loan.”
Gold loan: New gold loans priced at a 10.8% blended rate
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 23
Gold loan: New gold loans priced at a 10.8% blended rate
“10.8% is a blended rate, sir.”
Gold loan: Gold loan rates raised where possible; no further raise this quarter
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 23
Gold loan: Gold loan rates raised where possible; no further raise this quarter
“No, we increased -- it's a fixed-rate gold loan book, and we did increase the rate in the market where we had an opportunity.”
Gold loan: No gold loan rate increase planned this quarter
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 23
Gold loan: No gold loan rate increase planned this quarter
“Yes. But this quarter, I don't think we'll be raising; maybe even we -- I think we don't -- we will not raise this quarter.”
Debt and working capital
Average CD ratio 86%; CASA steady at 27% of deposits
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 6
Average CD ratio 86%; CASA steady at 27% of deposits
“Our average CD ratio for 2QFY27 stood at 86%. The CASA percentage of the total deposits remained constant at 27% this quarter.”
$69 million raised under RBI FCNR swap, $15 million from new customers
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 6
$69 million raised under RBI FCNR swap, $15 million from new customers
“We have mobilized an amount of $69 million under RBI swap, out of which $15 million from new-to-bank customers.”
Term deposits under INR 3 crore make up 48%
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 13
Term deposits under INR 3 crore make up 48%
“So the term deposit less than INR 3 crores is contributing 48%. My INR 3 crores to INR 50 crores is only 17%, and more than INR 50 crores is only 8%.”
One-offs
INR 32 crore leave encashment provision in Q2 versus INR 3-5 crore usually
J. Sadagopan · Chief Financial Officer · Q&A · p. 16
INR 32 crore leave encashment provision in Q2 versus INR 3-5 crore usually
“This is mainly because the leave encashment, we have provided the actual valuation we have provided to the tune of INR 32 crores during Q2, which used to be INR 3 crores to INR 5 crores of repayment each and every quarter.”
INR 803 crore of loans sold to an ARC for INR 131 crore
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 7
INR 803 crore of loans sold to an ARC for INR 131 crore
“During the quarter, the bank sold accounts to the tune of INR 803 crores, comprising live and technical write-off accounts, against which the provision of INR 792 crores has been made against the INR 803 crores of bank accounts sold to an ARC for a consideration price of INR 131 crores.”
Of loans sold to ARC, INR 303 crore collateralised, INR 500 crore without
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 15
Of loans sold to ARC, INR 303 crore collateralised, INR 500 crore without
“INR 303 crores is fully collateralised; INR 500 crores is without collateral.”
About INR 740 crore of sold loans over three years old; sale seen as fair
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 15
About INR 740 crore of sold loans over three years old; sale seen as fair
“almost INR 740 crores is more than three years. And hence, we did the internal math on the time value of money, and we thought that it is a fair deal if we can take this off.”
ARC collection INR 131 crore: INR 105 crore in other income, INR 26 crore live
J. Sadagopan · Chief Financial Officer · Q&A · p. 24
ARC collection INR 131 crore: INR 105 crore in other income, INR 26 crore live
“See the total ARC collection is around INR 131 crores, of which other income INR 105 crores and INR 26 crores for the live recoveries.”
Risks
Incremental ECL need INR 299.42 crore at Sept 2026, down from INR 445 crore
J. Sadagopan · Chief Financial Officer · Q&A · p. 21
Incremental ECL need INR 299.42 crore at Sept 2026, down from INR 445 crore
“So 30th September '26, incremental ECL provision requirement is INR 299.42 crores. The variation is minus 5.36. When we started with 31st March 2025, our incremental ECL provision requirement was INR 445 crores.”
No P&L impact from ECL
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 25
No P&L impact from ECL
“There is no impact of P&L on ECL. That's what I think my CFO wants to add. There's no impact of P&L in ECL.”
Gold loan: RBI gold loan LTV caps now 85%, 80% or 75% by loan size
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 5
Gold loan: RBI gold loan LTV caps now 85%, 80% or 75% by loan size
“That is loan amount up to INR 2.5 lakhs, we can go up to 85% LTV, INR 2.5 lakhs to INR 5 lakhs, 80% LTV, above INR 5 lakhs is 75% LTV.”
Gold loan: No gold top-up loans; gold SMA about INR 173 crore, 0.24% of gold advances
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 6
Gold loan: No gold top-up loans; gold SMA about INR 173 crore, 0.24% of gold advances
“The bank is currently not considering any top-up loans. As of 30/9/2026, the outstanding SMA accounts under the gold loan portfolio is around INR 173 crores, representing 0.24% of the gold advances.”
Gold loan: Gold loan gross NPA about INR 9.5 crore; only INR 20 lakh went to auction
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 6
Gold loan: Gold loan gross NPA about INR 9.5 crore; only INR 20 lakh went to auction
“So the Gross NPA is around INR 9.5 crores. Out of INR 9.5 crores, at the moment it became NPA, the auction has gone only for INR 20 lakhs.”
Other
Advances grew 26% year on year to INR 72,442 crore
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 4
Advances grew 26% year on year to INR 72,442 crore
“We had registered 26% advance growth in 2QFY27 year-on-year, and our advance have increased to INR 72,442 crores from INR 57,561 crores in 2QFY26.”
Total business crossed INR 150,000 crore
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 3
Total business crossed INR 150,000 crore
“Our bank has crossed the milestone of INR 150,000 crores in total business during the current quarter.”
Credit growth of 25% for three straight quarters
R. Vijay Anandh · Managing Director and Chief Executive Officer · p. 4
Credit growth of 25% for three straight quarters
“We have achieved 25% credit growth for the last three quarters consecutively.”
Gold loan: 99% of gold loans are bullet loans
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 10
Gold loan: 99% of gold loans are bullet loans
“99% of the loans as we speak today are bullet. And we haven't seen any characteristic change between these two.”
Gold loan: 96% of gold loan business is in Southern India
R. Vijay Anandh · Managing Director and Chief Executive Officer · Q&A · p. 19
Gold loan: 96% of gold loan business is in Southern India
“96% in Southern India, 4% outside Southern India.”
Sources
- Earnings call transcript, Q2 FY27 Filed 2 Nov 2026 · 25 pages
Management's own statements, quoted from its NSE filings. This page was read by AI and can contain mistakes: check the source pages before relying on any figure. No forecast or opinion of ours. Not investment advice.