Advances growth 2-3% above industry
Management reiterated expectation of achieving credit growth 2-3 percentage points above system growth, with focus on maintaining MSME mix at 55-60% and gold loans at 31-32%.
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City Union Bank · forward-looking guidance across the available source record.
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Guidance tracker
What management said would happen.
growth
NIM range of 3.65-3.7%
NIM expected to compress by approximately 5 basis points from current 3.78% due to rising term deposit rates, before stabilizing as deposit repricing benefit kicks in.
ROA target 1.55-1.65%
Exit ROA guidance of 1.6-1.65% with full-year ROA expected at current level of 1.55%+. Other income expected to grow from Rs 243 crores towards Rs 300-320 crores in Q4 FY27.
Cost-to-income at 47-48%
C/I ratio guidance maintained at 47-48% for FY27 despite Q1 being at 45.42%, due to salary hikes effective July and branch expansion costs. Long-term aspiration to reach below 45%.
Mid-to-high teen credit growth for FY27
Management expects loan growth of mid-to-high teens, 2-3% above industry, continuing the current trajectory.
NIM stable around 3.9% with ±10bps band for Q4
NIM expected to remain in the range of 3.8% to 4.0% in Q4 FY26, with possible upward bias from deposit repricing.
ROA to remain above 1.5%
Return on assets expected to stay at current levels of 1.5%+ for FY26.
Cost-to-income ratio in 48-50% range for FY26
Management reiterated cost-to-income ratio guidance of 48-50% for the full year.