Are City Union Bank Ltd. latest results good or bad?

City Union Bank Ltd. has reported its financial results for the quarter ended December 2025, showcasing notable operational trends. The bank achieved a gross NPA ratio of 2.17%, marking its lowest level in multiple quarters, while the net NPA ratio improved to 0.78%. This reflects effective credit management and a commitment to maintaining strong asset quality. In terms of profitability, the bank's net profit reached ₹332.16 crores, reflecting a year-on-year growth of 16.14%. The net interest income surged to ₹752.17 crores, demonstrating a sequential increase of 12.85% and a year-on-year expansion of 27.97%. This growth indicates the bank's ability to enhance its interest margins amid a competitive lending landscape. City Union Bank's total income for the quarter was ₹2,001.03 crores, which represents a sequential increase of 4.64% and a year-on-year growth of 17.22%. The operating profit before provisions and contingencies climbed to ₹513.16 crores, establishing a new quarterly high with a sequential increase of 9.04%. However, provisions and contingencies rose to ₹96.00 crores, reflecting a prudent approach to maintaining a robust balance sheet. The bank's capital adequacy ratio stood at 20.13%, indicating strong capital buffers, although it has seen a decline from previous quarters. The return on equity was reported at 12.17%, showcasing efficient capital deployment relative to shareholder funds. Overall, City Union Bank's latest results highlight a strong operational performance with improvements in asset quality and profitability metrics. The company saw an adjustment in its evaluation, reflecting the market's response to its financial performance and operational trends.