City Union Bank has reported a 13.3 per cent increase in its net profit for the fourth quarter ended March 31, 2016 at Rs.112.23 crore against Rs. 99.08 crore in the same period in the previous year. The net interest income has risen by 29 per cent to Rs. 264.44 crore during the quarter from Rs. 204.66 crore in the year-ago period.
For the year ended March 31, 2016, the net profit registered a rise of 12.6 per cent to Rs. 444.69 crore from Rs. 395.02 crore in the previous financial year. The net interest income rose by 21.5 per cent to Rs. 981.03 crore from Rs.807.37 crore.
Addressing presspersons here on Monday, Mr. N. Kamakodi, Managing Director and CEO said, the bank was able to maintain its performance in all segments especially in SMEs, trading and agriculture. The reason he attributed to the performance was that the bank continued to avoid exposure to large ticket corporate loans, or consortium lending. Mr. Kamakodi said there was a steady increase in deposits, advances, net profit and net interest margin.
For the financial year ended March 31, 2016, total business of the bank registered a growth of 15 per cent to Rs. 48,411 crore from Rs. 42,164 crore with deposits accounting for Rs. 27,158 crore (Rs.24,075 crore) and advances Rs. 21,253 crore (Rs.18,089 crore). Gross profit of the bank for the financial year increased by 20.3 per cent to Rs. 833.28 crore from Rs. 692.65 crore in the previous year. Gross non-performing assets ratio stood at 2.41 per cent against 1.86 per cent, while the net NPA was 1.53 per cent (1.30 per cent). The bank announced a final dividend of 20 per cent. It has already paid an interim dividend of 100 per cent.
Mr. Kamakodi said Mr. S. Mahalingam, the retired CFO of Tata Consultancy Services and the existing board member of City Union Bank, this was the first board meeting after he was appointed as non-Executive Chairman of the bank.
S. Balasubramanian, who retired as non-Executive Chairman, would continue his association with the bank as Honorary Chairman Emeritus of City Union Bank Foundation (the CSR arm of the bank), Mr. Kamakodi said..
