City Union Bank Ltd — Q4 FY26
City Union Bank delivered a strong Q4 FY26 with advances growing 26% YoY to ₹66,698 crore, the highest in 13 years, driven by MSME, gold loans, and secured retail.
bullish
high
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
81%Questions answered0Evaded / deflected8Questions audited
Answered
High priority
Risk management for gold loans given gold price decline
Asked by J Mundra, ICICI Securities
Management explained specific risk management practices and cushion, directly addressing the concern.
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Question
how do we manage the risk management for those portfolio which have been originated at let us say 165 rupees gram of 10 gram gold loan... how do you manage the risk in those portfolio?
Dr. N. Kamakodi (MD & CEO)
we did not increase the per g rate beyond that... we had sufficient cushion built into... gold loans which were issued when the share price was at that level as we had higher margin when we gave that loan.
Partial answer
High priority
Outlook on cost of deposits and whether they have bottomed
Asked by J Mundra, ICICI Securities
Management downplayed the significance but did not give a clear forward view on cost of deposits.
no clear directional guidancedeflected to CD ratio
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Question
cost of deposit has increased by three basis points. Does this mean... cost of deposit should start rising or... next quarter we should still see cost of deposits moderating?
Dr. N. Kamakodi (MD & CEO)
don't read too much into three basis point... we could almost have incremental CD ratio of 100%... we can go for another 3,000 crores of advances without increasing the deposits at all.
Answered
High priority
Yield on advances outlook after rate cuts
Asked by J Mundra, ICICI Securities
Management explained that yields are holding due to gold loan mix and incremental pricing.
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Question
there was a 25 basis point rate cuts... yield on advances are only down by 13 basis point... how should one look at the yield on advances incrementally?
Dr. N. Kamakodi (MD & CEO)
the incremental book... weighted average yield is holding up... 30% of our book is in gold alone which is in the fixed rate and non-agri gold loans are having even double digit yields.
Answered
High priority
Timeline to achieve higher ROA of 1.7-1.8%
Asked by J Mundra, ICICI Securities
Management gave a specific ROA target range for the next year.
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Question
when do we achieve the next level sir... when do we go to the next level? Let's say 1.7 1.8% ROA?
Dr. N. Kamakodi (MD & CEO) and Vijay Anand (incoming CEO)
we should exit this year with at least 10 bps more in ROA so we should be there between 1.65 to 1.66... that's the number.
Partial answer
Medium priority
Plans for association after limiting executive role
Asked by J Mundra, ICICI Securities
Management outlined possibilities but no firm commitment due to regulatory dependency.
deferred to regulatory approvalno definitive timeline
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Question
what is the plan ahead do you intend to be there as a non-executive director or... how do we see that transition?
Dr. N. Kamakodi (MD & CEO)
board asked me to join the board in non-executive capacity... it depends upon regulatory comfort... board has asked me to be chairman of the City Union Bank foundation.
Answered
High priority
Upper limit on gold loans and demand for MSME loans
Asked by MB Mahesh, Kotak Securities
Management gave clear upper band for gold loans and detailed demand drivers for MSME.
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Question
internally at the board level do you have an upper limit on how much of gold loans can the bank take... and the second question... demand for MSME loans... what is the nature of the demand?
Dr. N. Kamakodi (MD & CEO)
30 to 31 32 itself is like we are almost at the upper band... growth is because of combination of all factors... capacity utilization increased... they are going for expansion.
Partial answer
Medium priority
When will underwriting filters be tightened?
Asked by MB Mahesh, Kotak Securities
Management mentioned SMA and feedback but did not commit to a specific trigger point.
no specific threshold givenvague criteria
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Question
when will you start tightening the filters on underwriting... what will it take for you to decide saying that things on the ground is starting to get a little bit more riskier?
Dr. N. Kamakodi (MD & CEO)
numerical number will be your SMA numbers... anecdotal feedbacks... we will get a feel... we are closely monitoring the situation.
Answered
Low priority
Proportion of loans covered under CGTMSE scheme
Asked by MB Mahesh, Kotak Securities
Management provided a specific percentage range.
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Question
what proportion of the loans would now be covered under the CGTMSE scheme or any other scheme of the government?
Dr. N. Kamakodi (MD & CEO)
it's very minuscule... mostly around two to three percentage that's all.
Answered
High priority
Impact of ECL provisions on steady state costs
Asked by Soir, Access Capital
Management gave a specific long-term expectation for credit cost reduction.
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Question
I was wondering if at this point you would be more comfortable sharing your view on what would be the impact on the steady state costs.
Dr. N. Kamakodi (MD & CEO)
my expectation is that at least there has to be 50% reduction in this number in the next average of the next 15 years... credit cost... average works out to about 6 or so over the period of last 15 years.
Answered
Low priority
Reasons for joining City Union Bank and cultural fit
Asked by Sur Gpati, Macquarie Capital
Management gave a personal and strategic rationale for joining.
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Question
what made you take this decision to join this bank? ... How do you see Union Bank's culture here? How is it different from other organizations?
Vijay Anand (incoming CEO)
I fully got convinced why should I be here... my wavelength... passion of what I wanted to do was absolutely matching with where software wants to take this bank to the next level.