N Kamakodi, MD and CEO, City Union Bank. | Photo credit: BIJOY GHOSH
Total income grew 17 per cent to ₹2,001 crore. Of this, the bank earned a net interest income of ₹752 cr for Q3 FY26, registering a 28 percent YoY growth.
Total advances rose 21 per cent in Q3 FY26 to ₹60,892 crore, compared to ₹50,409 crore in Q3 FY25. The yield on advances for the third quarter of FY26 improved to 9.73 percent, compared to 9.66 percent in the second quarter of FY26. MSME loans constituted nearly 39 percent of the total loan portfolio worth ₹23,836 crore. The bank’s total deposits stood at ₹70,516 cr in Q3 FY26, compared to ₹58,271 cr in the corresponding period last year, registering a growth of 21 percent.
After many quarters, we have achieved growth of more than 20 percent in both deposits and advances. This coupled with many other levers such as improved returns on advances and repricing of term deposits have all contributed to profitability, told N Kamakodi, MD and CEO, City Union Bank. business line. Regarding the demand and overall economic environment in the MSME sector, he said the situation was good and also improving as evidenced by a decline in their Special Mention Accounts.
The gross NPA rate for the third quarter of FY26 was reduced to 2.17 percent from 3.36 percent in the corresponding quarter last year. Net NPA declined to 0.78 percent in the current quarter from 1.42 percent in the third quarter of FY25.
With his 15-year term ending in April 2026 and regarding a new candidate for the post, Kamakodi said the bank had already submitted the names of potential candidates to the RBI in the second week of December and is awaiting approval. “The matter is under investigation and we will share more information once the regulator contacts us,” he said.
Net Interest Margin (NIM) increased, exceeding the company’s own expectations, due to faster repricing of deposits and an increase in the gold loan portfolio with a fixed interest component. The NIM stands at 3.89 percent for Q3FY26, compared to 3.58 percent in Q3 FY25. Gold loan saw a YoY growth of 33 percent and stood at ₹17,209 crore as of December 2025.
Published on February 2, 2026
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