CUB
Small CapCity Union Bank Limited
Financial Services
City Union Bank Ltd., an Indian private sector bank founded in 1904, is headquartered in Kumbakonam, Tamil Nadu. It primarily focuses on lending to MSME, Retail/Wholesale Trade, and the agricultural sector, maintaining a granular asset profile.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 70/100Rev +21% YoY · PAT +25% YoY · +6% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,856 Cr | +21.1% | +5.7% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹360 Cr | +25.0% | +8.4% |
| PAT margin | 19.4% | +61 bps | +49 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
CUB reported strong Q4 & FY26 performance with Deposits up 23% YoY and Advances up 26% YoY. Net Profit grew 25% YoY in Q4 and 18% YoY for FY26. Asset quality improved significantly, with GNPA at 1.91% and NNPA at 0.68% for FY26, alongside a stable NIM of 3.74% for FY26.
The bank's robust growth in deposits and advances, coupled with substantial improvement in asset quality and stable profitability metrics, indicates strong operational execution. The focus on granular, collateralized lending to MSME/SME segments appears to be yielding positive results.
Loan Book Products Composition
Latest issuer-disclosed distribution across 3 reported categories.
MSME/SME Focus
Specialized business model targeting the large, untapped MSME/SME segment, consistently delivering higher yields.
Granular Asset Profile
SME exposures result in a granular asset profile, reducing concentration risk.
Digital Lending
Introduction of a Digital Lending Process and new digital offerings to enhance customer experience and reach.
Gold Loan Portfolio
Gold Loan portfolio grew 36% YoY (Mar-26 vs Mar-25), contributing 29% to gross advances.
Branch Network Expansion
Added 74 branches in FY26, increasing total branches to 949 (from 875 in FY25).
Stable Liability Profile
Purely retail liability franchise with granular deposit base and high retention rates ensures a stable funding profile.
Digitalization Initiatives
Ongoing investment in robust infrastructure, including digitalized Loan Origination System (LOS) and new digital offerings.
Strong Credit Ratings
ICRA 'AA' for Long Term, 'A1+' for CD; CRISIL 'A1+' for CD; CARE 'AA-' for Long Term, indicating high safety.
Declining Capital Adequacy
CRAR decreased from 23.75% in FY25 to 21.92% in FY26, and Tier I from 22.70% to 20.82%.
Geographic Concentration
Strong presence in South India (770 branches), with 578 branches in Tamil Nadu alone, indicating regional concentration.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q4 results provide insight into recent operational momentum, while full-year (FY26) figures offer a comprehensive view of annual performance and trends in key banking metrics like asset quality and profitability.
AUM Growth (Advances)
Advances grew 26% YoY to INR 66,699 Cr in Q4 FY26 and FY26.
Net Interest Margin (NIM)
NIM was 3.87% in Q4 FY26 (vs 3.60% YoY) and 3.74% for FY26 (vs 3.60% YoY).
Cost of Deposits
Cost of Deposits decreased to 5.60% in Q4 FY26 (vs 6.02% YoY) and 5.70% for FY26 (vs 5.85% YoY).
Gross NPA
Gross NPA improved to 1.91% in Q4 FY26 and FY26 (vs 3.09% YoY).
Specialized Banking Model
Management emphasizes a specialized banking model aligned to target segments like SME/MSME.
Prudent Risk Management
SME/MSME loans are additionally collateralized by residential property and personal guarantees, leading to lower NPA.
Robust Infrastructure Investment
Focus on comprehensive employee training and recruitment infrastructure, alongside digitalizing LOS.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net NPA | 0.68% (Q4 FY26) | Monitor for sustained low levels and further reduction in restructured accounts. |
| Advances Growth | 26% YoY (Q4 FY26) | Watch for continued double-digit growth momentum in the loan book. |
| Net Interest Margin | 3.74% (FY26) | Track stability or improvement in NIM amidst changing interest rate cycles. |
| Capital Adequacy Ratio | 21.92% (Q4 FY26) | Observe if CRAR stabilizes or improves, especially Tier I, to support future growth. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The bank will continue with the targeted growth of mid-teen to high-teen with about 2 to 3 percent over and above the systemic growth rate.
"will continue with the targeted growth of mid-teen to high-teen"
The bank can increase the CASA growth by a few percentage points more than what was previously envisaged.
"we can increase the growth by few % point more than what we had envisaged"
The bank may go for some incremental higher growth rate compared to what was communicated in earlier con-calls, supported by improved asset quality.
"maybe go for some incremental higher growth rate"
My successor, Shri Vijay Anandh, is sure to take the bank to newer heights and will probably achieve many more milestones in the years to come.
"whom I am sure will take the bank to newer heights"
Trend score and candlestick chart
43NeutralSMA20 -6.9% / mo
Technical chart
CUBweekly · 5Y+43.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 53. Wait for confirmation.
- SMA20 falling (~7.4% over last month) — short-term momentum negative.
- RSI(14) at 53 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 21% off 52W high · 36% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.2%.
- Fair-value margin of safety is positive at 56.4%.
- Cash flow contributes 6/10 to the score.
Main drags
- Quality is weaker at 1/20; verify the latest quarterly trend.
- Balance sheet is weaker at 7/15; verify the latest quarterly trend.
- Growth is weaker at 14/25; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 79th percentile of the scored universe and 90th percentile within Financial Services. Main check: financial discipline is weak at 56/100.
High Trust Lite: Promoter pledge is zero. Key concern: ROCE is low at 6.7%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 90th pctile, median 62 · Small: 83rd pctile, median 65
138 documents indexed, but claim history is not strong enough yet.
4 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3.2%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.07.
Trust risks
- ▸ROCE is low at 6.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 13.80
- P/B
- 1.74
- EV/EBITDA
- —
- Market Cap
- 18354.00Cr
Profitability
- ROE
- 13.20%
- ROCE
- 6.74%
- ROA
- 1.37%
- Dividend Y
- 0.61%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 13.00%
- EPS 3Y
- 12.00%
Balance Sheet
- Debt/Equity
- 0.07
- Interest Coverage
- —
- Altman Z
- 2.01
- Book Value
- 142.00
Cash Flow
- FCF Yield
- 3.24%
- FCF Positive Y
- 11/5
- OCF
- 802.00 Cr
- EPS TTM
- 17.85
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 45%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.