Transcript of the Earning Conference Call Q1 FY 2027

Lll CITY UNION BANK LIMITED CIN : L65110TN1904PLC001287 Regd. Office: 149, T.S.R. (Big) Street, Kumbakonam - 612001, Thanjavur District, Tamil Nadu Telephone No: 0435-2402322 Fax: 0435-2431746 E-mail: shares@cityunionbank.in ; Website: www.cityunionbank.bank.in C.O/Shares/LR-5/2026-27 August 01, 2026 National Stock Exchange of India Ltd., BSE Ltd., Exchange Plaza, 5th Floor, DCS – CRD, Plot No.C/1, G Block, Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex, 25th Floor, Dalal Street, Bandra (E), Mumbai 400 001 Mumbai 400 051 Scrip Code: CUB Scrip Code: 532210 Sir / Madam, Sub: Transcripts of the Earnings Conference Call – Q1 FY 2027 -------- Pursuant to Regulation 46 of SEBI Listing Regulations, 2015 as amended, the Bank has hosted in its website the transcript of Earnings Conference Call – Q1 FY 2027, with regard to the Standalone Un-Audited Financial Results of the Bank for the Quarter ended June 30, 2026, as approved by the Board of Directors of the Bank, on July 28, 2026. The weblink is given below: https://cityunionbank.bank.in/filemanager/Aug26/CUB_Earnings_Con-call_Jul28-2026.pdf Kindly take the same on record. Thanking you Yours faithfully for CITY UNION BANK LIMITED Venkataramanan S Company Secretary & Compliance Officer “City Union Bank Limited 1QFY27 Earnings Conference Call” July 28, 2026 MANAGEMENT: MR. R. VIJAY ANANDH – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, CITY UNION BANK LIMITED MR. V. RAMESH – EXECUTIVE DIRECTOR, CITY UNION BANK LIMITED MR. J. SADAGOPAN – CHIEF FINANCIAL OFFICER, CITY UNION BANK LIMITED MODERATOR: MR. JIGNESH SHIAL - AMBIT CAPITAL PRIVATE LIMITED Page 1 of 24 City Union Bank Limited July 28, 2026 Moderator: Ladies and gentlemen, good day and welcome to City Union Bank Limited 1QFY27 Earnings Conference Call hosted by Ambit Capital Private Limited. As a reminder, all participant lines will be in listen-only mode, and there'll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jignesh Shial from Ambit Capital. Thank you and over to you, sir. Jignesh Shial: Thank you, Nirva, and good evening, everyone. On behalf of Ambit Capital, I would like to welcome you all to 1QFY27 earnings call of City Union Bank. We have along with us Mr. R. Vijay Anandh – MD and CEO; Mr. V. Ramesh – Executive Director; and Mr. J. Sadagopan – CFO. I will now hand over the call to Mr. R. Vijay Anandh – MD and CEO, for his opening remarks. Over to you, sir. R. Vijay Anandh: Thanks, Jignesh. Good evening, everyone. I have been joined by my ED, Shri Ramesh and CFO, J. Sadagopan and other senior colleagues in this room. Hearty welcome to all of you for this con-call to discuss the unaudited financial results of City Union Bank for the first quarter of FY2027. The Board approved the Results today and I hope you all have received the copies of results on the presentation. Before we get into the results, it's truly a great honour and privilege to lead the 122-year-old franchisee. I thank the board, regulator and shareholders for approving my candidature. My sincere gratitude to my predecessor, Dr. N. Page 2 of 24 City Union Bank Limited July 28, 2026 Kamakodi, for his mentorship and steadfastly supporting the smooth transition of leadership. At this juncture, I want to congratulate our director, Professor V. Kamakoti, who was conferred with prestigious Padma Shri award in recognition to his contribution to the nation. I hope you all have received the notice of the annual general meeting to be held on 14th August '26, which will happen face-to-face at Kumbakonam and also through the virtual mode. On behalf of the board, I invite you all to participate in the AGM. During 4QFY26 con-call, we have stated our expectations for FY '27. With respect to advances, we should be 2%-3% over and above the credit growth of the industry. Our focus on MSME will remain the same. Gold loans and secured retail will be an additional enhancer, but MSME proportion will continue to dominate. Our business through the third party, which is DSAs, on an overall bank book, we envisage only 1%- 2%. Our focus on secured products will continue for the year. Our long-term average numbers with respect to PAT, ROA, and NIM will hold good, and we hope the positive momentum will continue. So, these were the discussions we had at the end of Q4. Largely, we are in line with the expectations conveyed in the last quarter call. During the last financial year, we have achieved double-digit credit growth in all the four quarters. For 1QFY27 as well, we have achieved 25% credit growth quarter-on-quarter, the highest growth rate in June- to-June and our advances had increased to Rs. 67,645 crores from Rs. 54,020 crores in 1QFY26. As stated in our earlier calls, with improved efficiency level aided by core loan growth, coupled with digital lending process, we have achieved consistent credit growth and we hope that current trend will continue. Page 3 of 24 City Union Bank Limited July 28, 2026 Deposits: Our deposits stood at Rs. 79,342 crores for 1QFY27 as compared to Rs. 65,734 crores in 1QFY26, registering a growth of 21%. As you all know, we always measure by average CASA and not by terminal deposits. The average CASA grew by 22% in 1QFY27 to Rs. 20,062 crores compared to Rs. 16,478 in the corresponding period last year. Sequentially also, it has improved since 1QFY26, i.e. for five consecutive quarters. Our CD ratio for this quarter is at 85%, which is the level we indicated in our last call as well. With respect to the benefit given by RBI on FCNR deposits till now, the bank has mobilized a fresh deposit of Rs. 150 crores. Asset Quality: On the asset quality front, for the current quarter, the total slippages are around Rs. 195 crores, while the total recovery is Rs. 206 crores, consisting of Rs. 182 crores of live NPA and Rs. 24 crores of technically written-off accounts. So, the trend of recovery more than slippages continues, and we are confident of maintaining recovery more than slippages for the next quarter as well, which is the current quarter. Our Gross NPA has reduced to 1.73% in 1QFY27. Both Gross NPA and Net NPA, in both percentage and absolute terms, have been reducing quarter-by-quarter for the past 12 quarters continuously. When compared to 1QFY26, the GNPA has reduced from 2.99% to 1.73% which is almost 126 bps reduction. Similarly, in our Net NPA, we have reduced to Rs. 405 crores and the Net NPA percentage is to 0.61% in 1QFY27 while the Net NPA was at 1.20% in 1QFY26 which is the reduction of 59 bps on Y-o-Y basis. Again, overall SMA2 to total advance for the past 3 quarters is less than 1%. Based on our discussions with cross-section of our borrowers from various industries, we learnt and observed that the domestic Page 4 of 24 City Union Bank Limited July 28, 2026 consumption remained largely insulated from the impact of West Asia crisis. For the 1QFY27, PCR provision coverage ratio with technical write-offs stood at 85% which has improved from 79% during the corresponding period last year. For the current quarter, PCR without a technical write- off has improved to 65% compared to 61% during the corresponding period last financial year. Over the past 8 quarters or so, we have steadily and continuously improved our PCR. Our interest income had grown by 24% in 1QFY27 and increased to Rs. 1,985 crores from Rs. 1,605 crores in 1QFY26. Our yield on advances stood at 9.79% for the current quarter, which is equal to our 4QFY26 level of almost 9.80%. On the cost side: Our cost of deposits stood at 5.56%, marginally lower than 5.60% in the previous quarter (i.e., 4QFY26), due to repricing benefits. Our NIM for 1QFY27 stood at 3.78%. With term deposit rates on the verge of rising due to high demand, we expect the cost of deposits [Showing first 8,000 characters — download PDF for full document]