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City Union Bank Q4 Results Review: IDBI Capital Maintains 'Buy', Sees 24% Upside On Strong Credit Growth

City Union Bank's sustainable return ratios along with better than industry credit growth should support re-rating, says IDBI Capital.

<div class="paragraphs"><p>&nbsp;City Union Bank's credit growth has improved during FY25 in line with pre-pandemic double digit growth.&nbsp;(Photo Source: Bank's official Facebook page)</p></div>
 City Union Bank's credit growth has improved during FY25 in line with pre-pandemic double digit growth. (Photo Source: Bank's official Facebook page)
City Union Bank's credit growth improved to 14% YoY (6% YoY FY24) led by traditional loan segments. JL non-Agri book grew by 37% YoY. MSME book grew by 23% YoY while management guided for double digit growth for FY26. We expect 14% CAGR (FY25-27E) credit growth.
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