City Union Bank has registered a 25.2 per cent increase in its net profit at Rs.72.24 crore for the third quarter ended December 31, 2011, up from Rs.57.70 crore in the corresponding period in the previous year.
Addressing presspersons here on Tuesday, N. Kamakodi, Managing Director and CEO, said “overall, we were able to show a 25-27 per cent growth in all parameters and contain gross and net non-performing assets levels.”
He said total income improved by 40 per cent to Rs.489.33 crore from Rs.349.29 crore. Interest income jumped by 40.13 per cent to Rs.438.57 crore from Rs.312.97 crore. Net interest income was higher by 17.26 per cent at Rs.122.83 crore against Rs.104.75 crore. The net interest margin stood at 3.24 per cent.
He said with continued upgradation of credit appraisal technique and risk management practices, the gross non-performing asset level was reduced to 1.28 per cent from 1.18 per cent and net non-performing asset to 0.51 per cent from 0.53 per cent.
The MD said in the nine months ended December 31, 2011, the bank had achieved a 39 per cent growth in total income at Rs.1,366.59 crore against Rs.984.72 crore and the net profit to Rs. 208.27 crore from Rs. 163.65 crore in the year-ago period. Total deposits grew by 28.68 per cent to Rs.15,412 crore as on December 31, 2011, from Rs.11,977 crores as on December 31, 2010. Gross advances went up by 29.47 per cent to Rs.11,027 crores from Rs.8,517 crore.
Rights issue
Mr. Kamakodi said, the board, at its board meeting held on Tuesday, also considered the proposal for initiating the formalities and procedures for a rights issue. “We will be requiring Rs.3,000 crore of net worth to support the growth rate of 22-25 per cent,” he said and added that the bank might mobilise around Rs.400 crore through rights issue.
