1. Opening Hook
Just when banks were blaming “macroeconomic headwinds” for everything from NIM compression to their CFO’s migraine, City Union Bank walked into the room with18% credit growthandnet NPA below 1% after 46 quarters—like that topper kid who says, “Bas thoda sa padhta hoon.”
As theBhagavad Gitasays, “Yogah karmasu kaushalam”—excellence in action. CUB seems to have taken that literally.
Keep reading—because the fun (and the sarcasm) compounds faster than their gold loan book.
2. At a Glance
- Advances +18% YoY– Management claims it’s “mid-teens,” but this looks like a teenager who lied about his age.
- Deposits +21%– CFO swears they didn’t bribe depositors with free laddoos.
- Gross NPA down to 2.42%– 10-year low; auditors double-checked if they missed a page.
- Net NPA at 0.90%– First time sub-1% in 46 quarters. Celebration cake not charged to OPEX (probably).
- NIM at 3.63%– Thanks to term deposits repricing and gold loans doing “fixed-rate yoga.”
- ROA 1.59%– Quiet flex.
- PAT +15% YoY– Profits behaved this quarter, unlike last Diwali’s digestion.
3. Management’s Key Commentary (Quotes + Translations)
“We achieved the highest Q2 credit growth in a decade.”(Translation: Even we’re surprised we pulled this off.)
“Our SMA2 is down to 1.34%, from 2.03% last year.”(Translation: MSME borrowers finally started picking up our calls.)
“Net NPA below 1% after 46 quarters.”(Translation: Please clap.)
“Recoveries continue to exceed slippages; may continue for Q3 and Q4.”(Translation: Yes, the miracle run is still on. No jinxing please.) 😏
“Cost of deposits reduced by 24 bps—much higher than anticipated.”(Translation: Even excel sheets couldn’t predict this stroke of luck.)
“ECL impact is fluid; not alarming.”(Translation: We won’t give you a number. Stop asking.)
“Gold loans at fixed rates give cushion.”(Translation: Our golden child continues to pay the bills.)
“Branch-led sourcing remains 90%+.”(Translation: DSA WhatsApp messages still banned.)
4. Numbers Decoded
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Metric Q2 FY26 Q2 FY25
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Advances (₹ Cr) 57,561 48,722
Deposit (₹ Cr) 69,486 57,369
Credit Growth (%) 18% 11-12%
Deposit Growth (%) 21% 12%
GNPA (%) 2.42 3.54
NNPA (%) 0.90 1.62
NIM (%) 3.63 3.54
ROA (%) 1.59 1.55
PAT (₹ Cr) 329 285
Slippages (₹ Cr) 156 ~300+
Recoveries (₹ Cr) 303 ~250
--------------------------------------------------------------Quick Decode:
- Recoveries slapped slippages again—this bank is running a collection special ops unit.
- NIM rising despite rate cuts? Only gold loans and divine intervention can do that.
- GNPA/NNPA charts now look like weight-loss ads: “Before vs After.”
5. Analyst Questions (Summarised + Sarcasm)
Q: Renewable energy lending—secured or unsecured?A: Fully secured.(Translation: Relax, no climate-change NPA shock coming.)
Q: Credit growth source? Takeovers or organic?A: Mix of both.(Translation: We charm customers from all directions.)
Q: Can negative net slippages continue?A: Yes, for Q3 and Q4.(Translation: Our collections team deserves a raise.)
Q: Impact of ECL? Give numbers?A: Too early.(Translation: We refuse to be the first bakra giving guidance.)
Q: CASA growth magic?A: Dedicated teams + branch focus.(Translation: No AI magic.
