City Union Bank is a Kumbakonam-headquartered old-private-sector bank with a branch-driven gold-loan and MSME franchise, coming off a record Q1 FY27 in which PAT rose 25% YoY to Rs. 383 Cr. The Q2 print will speak to whether NIM holds above the guided 3.65-3.70% band as term-deposit repricing plays out, and whether the revised 1.55-1.60% ROA guidance stays intact.
| Results date | October 28, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter NII | Rs. 820 Cr (+31% YoY) |
| Previous quarter PAT | Rs. 383 Cr (+25% YoY) |
| Market cap | Rs. 21,989.68 Cr |
| CMP | Rs. 222.02 |
The board meets on October 28, 2026 to approve the standalone un-audited Q2/H1 FY27 results (quarter ended September 30, 2026). The trading window reopens on October 31, 2026.
A Q2 FY27 earnings call arranged through Ambit Capital is scheduled for October 28, 2026, with the weblink disclosed via a stock-exchange announcement dated October 23, 2026.
The quarter's key margin swing went the benign way inside the July-September window: fresh rupee term-deposit rates (WADTDR) fell 18 bps from 5.85% in July to 5.67% in August, which RBI ties to declining bulk-deposit rates, against management's earlier concern on rising term-deposit rates. That supports NIM holding near the 3.78% Q1 print, which was already 8 bps above the upper end of the guided 3.65-3.70% band, with the post-quarter 25 bps repo hike to 5.50% (Oct 5-7 MPC) a cost-of-funds headwind that belongs to Q3 onward. On growth, system non-food credit ran at roughly 18-19% YoY through the window (18.1% as of Sep 15, 2026), giving CUB's guide of growing 2-3% above industry room after Q1 advances grew 25% YoY to Rs. 67,645.4 Cr. Gold prices rose through mid-September (Rs. 1.42 lakh to Rs. 1.54 lakh per 10g) before a ~6.5% correction to ~Rs. 1.48 lakh, net higher over the quarter and expanding LTV headroom on the 62.07%-LTV gold book. The GST demand was cut to Rs. 208.91 Cr by the Oct 14, 2026 remand order from Rs. 337.79 Cr, but the residual is disputed and litigation is ongoing, making any provisioning commentary a call item. The ~20% tax-rate guide, given for 'at least another 2, 3, or 4 quarters' at the Q3 FY26 call, matures around this quarter, and an update flows straight into the twice-framed 1.55-1.60% ROA path.
NIM vs the 3.65-3.70% guided band: Q1 FY27 NIM printed 3.78%, above the guided band.
Performance vs guidance tracking
Growth and MSME re-acceleration
Capital, GST dispute and strategic items
Management has guided steady-state credit cost of ~0.40% and slippages of Rs. 700-750 Cr for FY27, with a slippage ratio of 1.20-1.30% on a one-to-two-year view. Recoveries have exceeded slippages for 10 straight quarters, and management said it does not envisage credit cost going up much.
Management acknowledged competition from banks and NBFCs but said CUB serves a branch-driven walk-in customer base and does not see much threat to gold loans from competition. Market share stands at 30-31% and is expected to hold at 31-32%, with gold loan rates unchanged.
At the Q1 FY27 call, full-year ROA guidance was revised to 1.55-1.60% (exit 1.55-1.65%) from 1.65-1.67% set at the Q4 FY26 call, reflecting the other-income trajectory — Q1 FY27 other income was Rs. 243 Cr versus Rs. 259 Cr in Q2/Q3 last year and nearly Rs. 300 Cr in Q4 last year.
An Oct 14, 2026 remand order cut the total FY 2021-22 GST demand to Rs. 208.91 Cr (Rs. 110.37 Cr tax plus Rs. 98.52 Cr interest/penalty) from the original Rs. 337.79 Cr. The bank disputes the residual demand, calls it devoid of legal sanctity, and will pursue legal remedies.
Q1 FY27 deposits stood at Rs. 79,342.3 Cr, up 21% YoY, against advances of Rs. 67,645.4 Cr, up 25% YoY, with the CD ratio at 85-86%. Management has said deposit growth is aligning with credit growth to maintain the desired CD ratio.