City Union Bank has achieved a growth of 25 per cent in net profit at Rs. 152.76 crore for the year ended March 31, 2010 against Rs. 122.13 crore in 2008-09. The bank has maintained the dividend at 75 paise per share of Re 1 each.
Addressing presspersons in connection with the announcement of bank’s performance for the year ended March 31, 2010, N. Kamakodi, Executive Director, said with the judicious handling of funds, in the midst of global slowdown and the negative impact on on the industrial and stock market fronts, the bank could able to achieve the net interest margin of 2-3 per cent by keeping the cost of funds at six per cent and earning an yield on income of 9.5 per cent. Its clients managed to maintain the business, especially in the agricultural sector, without interruption. The availability of adequate wind power has prevented the power shortage in the State. With signs of recovery in the fourth quarter, the bank has achieved a 33 per cent growth in net profit at Rs. 34.81 crore for the quarter ended March 31, 2010 againt Rs. 26.12 crore.
Total operating income for the year ended March 31, 2010 was Rs. 421.64 crore against Rs. 366.25 crore. Of which, net interest income accounted for Rs. 278.14 crore against Rs. 242.57 crore and non-interest income Rs. 143.50 crore against Rs. 123.68 crore.
Total business concluded was higher by 24 per cent at Rs. 17,181.30 crore against Rs. 13,892.84 crore. Deposits was higher by 25 per cent at Rs. 10,284.59 crore against Rs. 8,206.62 crore. Adances have risen by 21 per cent to Rs. 6,896.71 crore from Rs. 5,686.22 crore. Investments stood higher by 34 per cent at Rs. 3,210 crore against Rs. 2,397 crore. With judicious handling of portfolio and higher income from treasury operations, the bank has achieved a yield of 7.25 per cent.
Gross NPA (non-performing assets) was lower at Rs. 93.50 crore (1.36 per cent of total advances ) against Rs. 102.08 crore (1.80 per cent) and net NPA at Rs. 39.67 crore (0.58 crore) against Rs. 61.11 crore (1.08 per cent). The bank restructured its advances to the tune of Rs. 484.35 crore and after restructuring balance outstnaidng as at March 31,2010 was Rs. 368.76 crore.
The bank projected a total deposits of Rs. 13,250 crore and advances of Rs. 8,750 crore, taking the total business to Rs. 22,000 crore mark. It expects to achieve a growth of 33 per cent in net profit at Rs. 210 crore.The bank has a branch network of 222 as on March 31, 2010. It plans to add 56 branches during the year.
