City Union Bank Q3 Results: Profit rises 16%, asset quality improves

City Union Bank reported a stable set of results for the third quarter, marked by healthy profit growth, a sharp rise in net interest income and an improvement in asset quality metrics.

The bank’s net profit

rose 16% year-on-year to ₹332 crore in Q3, compared with ₹286 crore in the corresponding period last year. Net interest income increased sharply by 28% to ₹752 crore, up from ₹587.7 crore a year ago, reflecting better balance-sheet traction and core lending performance.

Asset quality trends improved sequentially during the quarter. Gross non-performing assets declined to 2.17% from 2.42% in the previous quarter, while net NPAs eased to 0.78% from 0.90% on a quarter-on-quarter basis, indicating better control over slippages and recoveries.

During the quarter and the nine months ended December 31, 2025, the bank recognised an estimated provision of ₹2 crore under employee costs, linked to the anticipated implementation of the new labour codes. City Union Bank said it continues to closely monitor developments related to the labour code framework and will review these estimates on an ongoing basis.

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Ahead of the earnings announcement, shares of City Union Bank Ltd closed at ₹286.70 on the NSE, up ₹2.95 or 1.04% for the day.