City Union Bank Targets Mid-Teen Loan Growth, Cautious on Unsecured Lending

• City Union Bank aims for 15-20% loan growth, focusing on secured lending like MSMEs, gold loans, agriculture, and secured retail.
• The bank remains cautious on unsecured lending to prioritize balance-sheet stability, a strategy to continue for many quarters.
• Strong Q3FY26 performance: Net interest income up 28% to ₹752 crore, pre-provision operating profit up 17.7% to ₹513 crore, and PAT up 16.1% to ₹332 crore.
• The bank's shares have gained nearly 66% over the past year, with a market capitalization of approximately ₹21,643.30 crore.
• Margins are expected to be sustainable, with fixed-rate gold loans and deposit repricing at lower rates compensating for repo rate cut impacts.