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Updated: June 14, 2012 16:18 IST

CUB Q4 net up 40 %

Corporate Bureau
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N. Kamakodi (left), Managing Director and CEO, and R. Mohan, Chief General Manager, City Union Bank, at a press conference in Chennai on Friday. Photo: Bijoy Ghosh
N. Kamakodi (left), Managing Director and CEO, and R. Mohan, Chief General Manager, City Union Bank, at a press conference in Chennai on Friday. Photo: Bijoy Ghosh

City Union Bank has reported a 40 per cent rise in its net profit in the fourth quarter ended March 2012, at Rs.71.98 crore against Rs.51.40 crore in the same period in the previous year. Total income for the quarter has risen by 37.4 per cent to Rs.537.31 crore from Rs.391.10 crore with interest income registering a rise of 37.6 per cent to Rs.476.10 crore from Rs.346.08 crore.

For the year ended March 31, 2012, total income has risen by 38.4 per cent to Rs.1,903.90 crore from Rs.1,375.81 while the net profit was up by 30.3 per cent at Rs.280.25 crore against Rs.215.05 crore in the previous year.

Dividend

The bank has announced a dividend of Re. 1 per share of Re. 1 face value.

Addressing presspersons here on Friday, N. Kamakodi, Managing Director and CEO, said “despite a difficult economic environment, we were able to show a reasonable growth, contain non-performing assets (NPA) and maintain asset quality.” He said the bank had enforced vigorous collection efforts and, as a result, the gross NPA was reduced to 1.01 per cent as on March 31, 2012, from 1.21 per cent as on March 31, 2011. The net NPA was 0.44 per cent against 0.52 per cent, and the provision towards non-performing assets was reduced by Rs.10 crore to Rs.57 crore. The provision coverage ratio was comfortable at 76.8 per cent, Mr. Kamakodi said.

Mr. Kamakodi said last year, the bank had restructured only six loan accounts for a total amount of Rs.38.6 crore. The overall restructured loan portfolio was around Rs.268 crore.

The overall growth in business was higher than the industry standard with deposits registering a rise of 26.5 per cent to Rs.16,341 crore in the year ended March 31, 2012, from Rs.12,914 crore in the previous year. The growth in advances was 31 per cent at Rs.12,222 crore against Rs. 9,329 crore. The return on assets, at 1.71 per cent against 1.67 per cent, was reasonably better than the industry standard, Mr. Kamakodi said.

According to R. Mohan, Chief General Manager, the return on equity was healthy at 25 per cent against 23 per cent in the previous year. The capital adequacy ratio, at 12.57 per cent, was well above the minimum levels prescribed by the Reserve Bank of India. However, to meet the future capital needs for expanding the business, the bank had decided to proceed with a rights issue and hoped to complete it within six months.

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