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City Union Bank (Target - ₹320, Buy) - “Leadership transition with strategic continuity”

ICICIdirect Research 30 Apr 2026 DISCLAIMER

CUB delivered a healthy performance, underpinned by strong loan growth (~26% YoY) and robust NII growth (~31% YoY), aided by a favourable asset mix with ~29% fixed-rate gold loans despite full rate transmission.
Asset quality continued to improve, with higher provisioning reflecting proactive buffer-building rather than incremental stress. The management transition to R. Vijay Anandh as MD & CEO is expected to be smooth, ensuring continuity in strategy and execution.
Going forward, management guided for mid-to-high teen credit growth, stable NIM within a narrow band, and RoA improvement to ~1.65% (vs 1.5% earlier), supported by operating leverage and steady asset quality, providing comfort on earnings visibility.

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