City Union Bank reported a healthy set of numbers. PAT came in at | 123.5 crore, up 10.8% YoY vs. estimate of | 120 crore due to higher-than-expected NII of | 280 crore (up 25% YoY) . Higher traction in NII was owing to an 11 bps QoQ improvement in margins to 4.07% (highest in the last several quarters) and healthy credit growth of 18.5% YoY to | 21216 crore.Operational profit increased at a healthy pace of 19.6% YoY to | 236 crore, above our estimate of | 223 crore. ICICI Securities Limited maintain their BUY rating and revise our target price higher to | 140 from | 118 earlier as we raise our target multiple to 2.2x FY18E ABV vs. 1.9x earlier.