City Union Bank has reported a 14.9 per cent rise in its net profit at Rs. 322.02 crore for the year ended March 31, 2013, against Rs. 280.25 crore in the previous financial year. Total income rose by 29.3 per cent to Rs. 2,462.39 crore from Rs. 1,903.90 crore.
Addressing presspersons here on Monday, N. Kamakodi, Managing Director and CEO, said the bank could achieve a sustained growth in performance for many years and the average net interest margin was maintained above 3.3 per cent in the last 15-20 quarters.
“In a difficult year when there was general economic downturn and financial pressures, we feel our performance is respectable”, he said. The net interest margin was 3.35 per cent for the year ended March 31, 2013, against 3.40 per cent in the previous year.
The bank achieved a 25 per cent rise in its total business at Rs. 35,648 crore in the year ended March 31, 2013, against Rs. 28,563 crore in the previous financial year with deposits registering a growth of 24 per cent and advances 26 per cent. For the fourth quarter ended March 31, 2013, the net profit rose by 14.6 per cent to Rs. 82.49 crore from Rs. 71.98 crore. Total income grew by 26 per cent to Rs. 677.98 crore from Rs. 537.32 crore in the year-ago period.
The gross non performing assets (NPA) ratio was 1.13 per cent against 1.01 per cent and the net NPA at 0.63 per cent against 0.44 per cent. The provision coverage was highly comfortable at 71 per cent he said. On restructured assets, Mr. Kamakodi said the current restructured assets portfolio was Rs. 270 crore, working out to 1.80 percent of total advances.
Dividend
The directors have announced an interim dividend of 100 per cent (Re. 1 per share of Re. 1 face value) and 50 paise on partly paid up shares. No final dividend has been recommended.
