City Union Bank Q3 FY26 – ₹33,216 lakh Profit, GNPA Down to 2.17%, and a 120-Year-Old Bank Trying to Act Young

1. At a Glance – The Ancient Bank with a Modern Balance Sheet

City Union Bank is that quiet kid in class who never topped the boards but somehow ended up doing very well in life. Founded in 1904, still promoter-less, still obsessed with South India, and still lending aggressively to traders who know exactly how much gold is in their cupboard.

As of February 2, 2026, the stock trades around ₹285, giving it a market cap of ₹21,135 crore. In the last 3 months, the stock is up ~10%, and over 1 year, it has delivered a spicy ~66% return—not bad for a bank most people confuse with a PSU.

Q3 FY26 numbers were clean and boring in the best way possible:

• Net profit: ₹33,216 lakh
• QoQ profit growth: ~7%
• YoY profit growth: ~16%
• EPS (Q3): ₹4.48

Asset quality continues its slow yoga routine:

• Gross NPA: down to 2.17%
• Net NPA: down to 0.78%

No drama, no crypto lending, no exotic derivatives. Just MSMEs, gold loans, traders, and 875 branches—550 of them in Tamil Nadu, because why fix what isn’t broken?

If you like banks that don’t shout but quietly compound, welcome to City Union Bank.

2. Introduction – 120 Years Old and Still Lending to Kirana Stores

City Union Bank (CUB) is the definition of “steady hai bhai.” While private banks fight for credit cards, BNPL customers, and influencer partnerships, CUB is still busy financing traders, jewelers, small manufacturers, and agriculture-linked borrowers.

This is a relationship bank, not an algorithm bank. Loans are sanctioned after chai, not just CIBIL scores. And surprisingly, that still works.

Despite being over a century old, the bank has managed to:

• Maintain ROA ~1.5%, which is respectable for an MSME-heavy lender
• Keep capital adequacy at 23.75%, far above regulatory needs
• Gradually clean up NPAs without balance sheet gymnastics

However, CUB is not without