Are City Union Bank latest results good or bad?

City Union Bank has reported its financial results for the quarter ending March 2025, highlighting several operational trends. The bank's gross non-performing assets (NPA) have reached a low of 3.09%, continuing a downward trend over the past five quarters, which indicates a positive shift in asset quality. Additionally, interest earned has peaked at Rs 1,532.72 crore, reflecting consistent growth during this period. Profit after tax (PAT) also reached a record high of Rs 287.96 crore, suggesting strong profitability.
The net NPA stands at 1.25%, further indicating a reduction in stressed loans, while net interest income has reached Rs 600.32 crore, showcasing growth in core business income. Earnings per share (EPS) have risen to Rs 3.89, which points to improved profitability for shareholders. The capital adequacy ratio (CAR) is at 23.75%, indicating a solid capital base relative to risk assets.

However, there are areas of concern. Profit before tax less other income (PBT) has decreased to Rs 111.74 crore, down 18.9% from the previous four-quarter average. Additionally, non-operating income constitutes 69.21% of PBT, raising questions about the sustainability of the bank's income sources.

Overall, while City Union Bank has shown positive trends in several key metrics, the company saw an adjustment in its evaluation, reflecting the mixed performance across different financial indicators.