Chennai: Private lender City Union Bank (CUB) on Tuesday posted a 25% increase in profit after tax (PAT) to Rs 383 crore for the quarter ended June 30, 2026, from Rs 306 crore in the corresponding quarter last year, aided by strong growth in net interest income despite higher provisions.Its interest income grew 24% to Rs 1,985 crore in Q1 FY27 from Rs 1,605 crore in Q1 FY26, while net interest income (NII) rose 32% to Rs 820 crore from Rs 625 crore in the year-ago quarter. Non-interest income remained flat year-on-year at Rs 244 crore. Gross profit increased 29% to Rs 581 crore in Q1 FY27 from Rs 451 crore in the corresponding quarter last year. Provisions and contingencies were higher at Rs 198 crore (Rs 145 crore).Deposits rose 21% to Rs 79,342 crore in Q1 FY27 from Rs 65,734 crore in the corresponding period last year. Total advances increased 25% to Rs 67,645 crore from Rs 54,020 crore in Q1 FY26.Gross non-performing assets (GNPA) declined to 1.73% in Q1 FY27 from 2.99% in Q1 FY26, a reduction of 126 basis points (bps). Net non-performing assets (NNPA) also fell to 0.61% from 1.2% a year earlier.Both GNPA and NNPA have declined sequentially over the past 12 quarters, CUB said in a statement.
