City Union Bank on Tuesday reported a 25% year-on-year increase in net profit to ₹383 crore for the first quarter, driven by robust growth in net interest income.

Interest income rose 24% year-on-year to ₹1,985 crore during the quarter, while interest expenses increased at a slower pace of 19% to ₹1,165 crore. As a result, net interest income (NII) grew 31% to ₹820 crore. Other income remained flat at ₹244 crore.

Higher provisioning, however, weighed on profitability. Total provisions increased 37% year-on-year to ₹198 crore, primarily due to a 60% jump in tax provisions to ₹120 crore. Other provisions rose to ₹78 crore from ₹70 crore in the corresponding quarter last year.

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Advances grew 25% year-on-year to ₹67,645 crore, while deposits increased 21% to ₹79,342 crore. As of June 30, 2026, the bank’s total business stood at ₹1.47 lakh crore, up 23% from a year earlier. The retail, agriculture and MSME (RAM) portfolio, including non-agriculture gold loans, accounted for 80% of the bank’s total advances.

Low-cost current account and savings account (CASA) deposits constituted 26% of the deposit base, while term deposits accounted for 49%. Asset quality continued to improve, with the gross non-performing asset (GNPA) ratio declining to 1.73% at the end of June from 1.91% in the previous quarter. The net NPA ratio also improved sequentially to 0.61% from 0.68%.

Shares of City Union Bank touched a 52-week high of ₹245.38 on the NSE before closing at ₹238.14 on Tuesday.