We have audited the Standalone Financial Statements of
City Union Bank Limited ('the Bank’], which comprise the
Balance Sheet as at 31 March, 2026, the Profit & Loss
Account, and the Cash Flow statement for the year then
ended, and notes to the Standalone Financial Statements,
including a summary of significant accounting policies
and other explanatory information, and incorporated in
these Standalone Financial Statements are the returns of
27 branches / offices audited by us and 927 branches/
offices audited by other Statutory Branch Auditors. The
branches audited by us and those audited by other
auditors have been selected by the Bank in accordance
with guidelines issued to the Bank by the Reserve Bank of
India.

In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
Standalone Financial Statements give the information
required by the Banking Regulations Act, 1949 as well as
Companies Act, 2013 (the 'Act'] in the manner so required
for banking companies and give a true and fair view in
conformity with the Accounting Standards prescribed
under section 133 of the Act read with the Companies
(Accounting Standards] Rules, 2006, as amended
("Accounting Standards"] as applicable to banks and other
the accounting principles generally accepted in India, of
the state of affairs of the Bank as at 31 March, 2026, and its
Profit and its Cash Flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the Standalone Financial
Statements in accordance with the Standards on Auditing
('SAs'] specified under Section 143(10] of the Act. Our
responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of
the Standalone Financial Statements Section of our
report. We are independent of the Bank in accordance
with the Code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the
Standalone Financial Statements under the provisions of
the Act and the rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the
Standalone Financial Statements.

KeyAuditMatters

Key Audit Matters are those matters that, in our
professional judgement, were of most significance in our
audit of the Standalone Financial Statements of the
current year ending 31 March, 2026. These matters were
addressed in the context of our audit of the Standalone
Financial Statements as a whole, and in forming our
opinion thereon, and we do not provide a separate
opinion on these matters. We have determined the
matters described below to be the key audit matters to be
communicated in our report.

Information Other than the Standalone Financial
Statements and Auditors' Report Thereon

The Bank's Board of Directors is responsible for the other
information. The other information comprises the
Chairman's Statement, CSR initiatives, Director's Report,
Annexures to Director's Report, Shareholders
Information, Business Responsibility Report, Corporate
Governance Report, Management Discussions & Analysis
Report, List of Branches, Basel III Disclosures, Decade of
Progress included in the Bank's Annual report, but does
not include the Standalone Financial Statements and our
auditors' report thereon.

Our opinion on the Standalone Financial Statements does
not cover the other information and the Pillar 3 disclosure
and the Basel III Disclosures, and accordingly, we do not
express any form of assurance or conclusion thereon.

In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the other
information and, in doing so, consider whether the other
information is materially inconsistent with the
Standalone Financial Statements or our knowledge
obtained in the audit or otherwise appears to be
materially misstated. When we read the other
information, including annexures in the annual report
thereon, if we conclude that there is a material
misstatement therein, we are required to communicate
the matter to those charged with governance. We have
nothing to report in this regard.

Responsibilities of Management and Those Charged
with Governance for the Standalone Financial
Statements

The Bank's Board of Directors is responsible for the
matters stated in Section 134 (5) of the Act with respect to
the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position,
financial performance and cash flows of the Bank in
accordance with the accounting principles generally
accepted in India, including the Accounting Standards
specified under Section 133 of the Act, in so far as they
apply to the Bank and provisions of Section 29 of the
Banking Regulation Act, 1949 and the circulars and
guidelines issued by Reserve Bank of India ('RBI') from
time to time. This responsibility also includes
maintenance of adequate accounting records in
accordance with the provisions of the Act and the RBI
Guidelines for safeguarding of the assets of the Bank and
for preventing and detecting frauds and other
irregularities; selection and application of appropriate
accounting policies; making judgments and estimates
that are reasonable and prudent; and design,
implementation and maintenance of adequate internal
financial controls, that were operating effectively for
ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and
presentation of the Standalone Financial Statements that
give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the Standalone Financial Statements, the
Management and Board of Directors are responsible for
assessing the Bank's ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless management either intends to liquidate the Bank
or to cease operations, or has no realistic alternative but to
do so.

The Board of Directors are also responsible for overseeing
the Bank's financial reporting process.

Auditors' Responsibilities for the Audit of the
Standalone Financial Statements

Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditors' report that
includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users
taken on the basis of these Standalone Financial
Statements.

As part of an audit in accordance with Standards, we
exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement
of the Standalone Financial Statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section
143(3) (I) of the Act, we are also responsible for
expressing our opinion on whether the Bank has
adequate internal financial controls with reference to
the Standalone Financial Statements and the operating
effectiveness of such controls.

• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.

• Conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that
may cast significant doubt on the Bank’s ability to
continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw
attention in our auditors’ report to the related
disclosures in the Standalone Financial Statements or,
if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’
report. However, future events or conditions may
cause the bank to cease to continue as a going concern.

• Evaluate the overall presentation, structure and
content of the Standalone Financial Statements,
including the disclosures, and whether the Standalone
Financial Statements represent the underlying
transactions and events in a manner that achieves fair
presentation.

Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in
aggregate, makes it probable that the economic decisions
of a reasonably knowledgeable user of Standalone
Financial Statements may be influenced. We consider
quantitative materiality and qualitative factors in (i)
planning the scope of our Audit work and evaluating the
results of our work; and (ii) to evaluate the effect of
identified misstatements in the Standalone Financial
Statements.

We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.

We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Standalone Financial
Statements of the current year ending 31 March, 2026,
and are therefore the key audit matters.

We describe these matters in our auditors' report unless
law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public
interest benefits of such communication.

Other Matters:

We did not audit the financial statements / information of
927 branches / offices included in the Standalone
Financial Statements of the Bank whose financial
statements / financial information reflect total advances
of '53,040.05 Crore and deposits of '59,200.44 Crore as
at 31 March, 2026 as considered in the Standalone
Financial Statements. These branches and offices cover
79.52 % of total advances and 75.60 % of deposits for the
year ended 31 March, 2026.

The financial statements/ information of these branches
have been audited by the Branch Auditors whose reports
have been furnished to us, and our opinion in so far as it
relates to the amounts and disclosures included in respect
of branches, is based solely on the report of such Branch
Auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

The Balance Sheet and the Profit and Loss Account have
been drawn up in accordance with the provisions of
Section 29 of the Banking Regulation Act, 1949 read with
Section 133 of the Companies Act, 2013.

1. As required Sub Section (3) of Section 30 of the
Banking Regulation Act, 1949, we report that;

a) We have obtained all the information and
explanations which, to the best of our knowledge
and belief, were necessary for the purpose of our
audit and have found them to be satisfactory;

b) The transactions of the Bank, which have come to
our notice, have been within the powers of the
Bank; and

c) The returns received from the offices and branches
of the Bank have been found adequate for the
purpose of our audit.

2. With respect to the matters to be included in the
Auditor’s Report under Section 197(16) of the Act, we
report that since the Bank is a banking company as
defined under Banking Regulation, 1949, the
reporting under section 197(16) in relation to
whether the remuneration paid by the Bank is in
accordance with the provisions of section 197 of the
Act do not apply by virtue of Section 35B(2A) of the
Banking Regulation Act, 1949.

3. Further, as required by Section 143(3) of the
Companies Act, 2013, we report that;

a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purpose of our audit;

b) In our opinion, proper books of account as required
by law have been kept by the Bank so far as it
appears from our examination of those books.

c) The reports on the accounts of the branch offices of
the bank audited under section 143(8) of the Act by
branch auditors of the Bank have been sent to us
and have been properly dealt with by us in
preparing this report.

d) The Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report
are in agreement with the books of account.

e) In our opinion, the aforesaid Standalone Financial
Statements comply with the Accounting Standards
specified under Section 133 of the Act, to the extent
they are not inconsistent with the guidelines
prescribed by Reserve Bank of India;

f) On the basis of the written representations
received from the directors as on 31 March, 2026
taken on record by the board of directors, none of
the directors is disqualified as on 31 March, 2026
from being appointed as a director in terms of
section 164(2) of the Act;

g) With respect to the adequacy of the internal
financial controls over financial reporting of the
Bank with reference to these Standalone Financial
Statement and the operating effectiveness of such
controls, refer to our separate Report in "Annexure
A" to this report; and

h) In our opinion, as the entity is a Banking Company,
the remuneration to its Directors during the year
ended 31 March, 2026, has been paid/ provided by
the Bank in accordance with the provisions of
Section 35B (1) of the Banking Regulation Act
1949, and;

i) With respect to the other matters to be included in
the Auditors’ Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended in our opinion and to the best of our
information and according to the explanations
given to us;

i. The bank has disclosed the impact of pending
litigations on its financial position in its
Standalone Financial Statements - Refer Note
16(7) of Schedule 18 to the Standalone
Financial Statements;

ii. The bank has made provision, as required
under the applicable law or accounting
standards, for material foreseeable losses if any,
on long-term contracts including derivative
contracts - Refer Note 15(V) of Schedule 18 to
the Standalone Financial Statements; and

iii. There has been no delay in transferring the
funds to the Investor Education and Protection
Fund Account by the Bank.

iv. 1. The Management has represented that, to

the best of its knowledge and belief, no
funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or kind
of funds) by the Bank to or in any other
persons / entities, including foreign entities
('Intermediaries’), with the understanding,
whether recorded in writing or otherwise,
that the Intermediary has, whether directly
or indirectly lend or invest in other persons
or entities identified in any manner
whatsoever by or on behalf of the Bank

("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries;

2. The Management has represented that, to
the best of its knowledge and belief, no
funds have been received by the Bank from
any persons / entities, including foreign
entities, that the Bank has directly or
indirectly, lend or invest in other persons or
entities identified in any manner
whatsoever by or on behalf of the Funding
Party ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf
of the Ultimate Beneficiaries;

3. Based on the audit procedures which we
have considered reasonable and
appropriate in the circumstances and
according to the information and
explanations provided to us by the
Management in this regard, nothing has
come to our notice that has caused us to
believe that the representations made by
the Management under sub-clause (1) and
(2) contain any material misstatement; and

v. The Bank has paid dividend during the year
which is in compliance with section 123 of the
Act.

vi. Based on our examination which included test
checks, the Bank has used an accounting
software for maintaining its books of account
which has a feature of recording audit trail (edit
log) facility and the same has operated
throughout the year for all relevant
transactions recorded in the software. Further,
during the course of our audit we did not come
across any instance of audit trail feature being
tampered with and the audit trail has been
preserved by the bank as per the statutory
requirements for record retention.

For P.B. Vijayaraghavan & Co For M. Srinivasan & Associates

Chartered Accountants C h artered Accountants

Firm Registration No : 004721S Firm Registration No : 004050S

Sd/- Sd/-

CA P.B. Santhanakrishnan CA Mohanadasa

Partner Partner

^Date : ^{27 Apri}l ²⁰²⁶ Membership No : 020309 Membership No : 221718

^place : ^Kumbakonam UDIN: 26020309POFQNZ4217 UDIN: 26221718GMZDHT7155