City Union Bank?s (CUB) strong core earnings growth (21%) in 3QFY16 was driven by NIM expansion (3.8%, 34bps) and pick-up in loan growth (14%). Steady non-interest income drove the healthy 23% growth in PPoP. However, higher LLP (2x YoY) restricted PAT growth to a mere 10% YoY. Stress accretion rose to 4% (slippages 2.7% ann. plus Rs 650mn of restructuring), but fell within guidance.