City Union Bank (CUB) reported a 10 per cent rise in its net profit at Rs.99.49 crore for the quarter ended June 30, 2014, as against Rs.90.29 crore in the year-ago period, on the back of improved operating profit.
Its operating profit grew by 7 per cent to Rs.172.69 crore from Rs.161.57 crore. However, its net interest income was almost flat at Rs.187 crore.
Total interest income stood at Rs.643.33 crore against Rs.623.98 crore, a rise of 3.10 per cent. But, non-interest income saw a growth of 40 per cent at Rs.110.70 crore (Rs.78.90 crore).
Advances grew by 5 per cent to Rs.16,153 crore (Rs.15,388 crore). Jewel loan portfolio dipped by Rs.717 crore, while the total non-jewel loan portfolio was up by Rs.1,482 crore, said N. Kamakodi, Managing Director and CEO.
Its net NPA went up marginally to 1.28 per cent sequentially from 1.23 per cent and 0.63 per cent in the corresponding quarter.
QIP issueMr. Kamakodi also said that CUB’s QIP (qualified institutions placement) was oversubscribed by 3.38 times aggregating Rs.1,181.39 crore. The plan was to raise Rs.350 crore in equity capital.
Of the Rs.1,181 crore worth of bids received, FIIs’ interest was for Rs.766 crore and DIIs had requested for Rs.415 crore.
The shares were placed at an issue price Rs.75.05 per share (including the share premium of Rs.74.05 per share).
As the bank’s present FII investment ceiling is 35 per cent, it could allot Rs.115 crore only to FIIs despite their strong interest. It allotted the balance Rs.235 crore to DIIs comprising mutual funds, insurance companies and PE firms.
Encouraged by FII’s increased interest in CUB, the board has decided to enhance the FII limit from 35 per cent to 40 per cent, subject to approvals.
