The net profit was higher by 26.3 per cent at Rs. 73.89 crore against Rs. 58.51 crore. On the proposed rights issue, N. Kamakodi, Managing Director and CEO of CUB said the bank had fixed the rights issue size at Rs. 250 crore, and had submitted the proposal to the Securities and Exchange Board of India.
City Union Bank has reported a healthy growth in its performance in the first quarter ended June 30, 2012, with a significant contribution from corporate and retail segments.
Total income has risen by 36 per cent to Rs. 560.90 crore from Rs. 417.02 crore in the same period in the previous year.
Interest income registered a rise of 35.9 per cent to Rs. 504.21 crore from Rs. 371.14 crore, and non-interest income 37 per cent to Rs. 62.69 crore from Rs.45.8 crore.
The net profit was higher by 26.3 per cent at Rs. 73.89 crore against Rs. 58.51 crore.
Addressing presspersons here on Friday, N. Kamakodi, Managing Director and CEO, said the bank could maintain its growth rate in all parameters for the past few quarterly cycles.
The net interest margin was 3.18 per cent for the quarter under reference. Mr. Kamokodi said he was hopeful of maintaining the net interest margin in the current quarter. On the possibility of a reduction in interest rates, Mr. Kamakodi said the bank’s board was looking for a complete clarity on the market scenario before taking a decision.
On the proposed rights issue, he said the bank had fixed the rights issue size at Rs. 250 crore, and had submitted the proposal to the Securities and Exchange Board of India. The ratio and the premium would be decided in due course, he said.
Total deposits of the bank rose by 25.23 per cent to Rs. 17,062 crore as on June 30, 2012, from Rs. 13,624 crore as on June 30, 2011. Advances went up by 33.17 per cent to Rs. 12,773 crore from Rs. 9,591 crore.
Total business registered a rise of 29 per cent at Rs. 29,835 crore against Rs. 23215 crore.
The gross NPA (non-performing assets) level declined to 1.07 per cent from 1.22 per cent, and the net NPA to 0.50 per cent from 0.51 per cent. The provision coverage ratio as on June 30, 2012, stood at 75 per cent.