City Union Bank has reported a 15 per cent increase in net profit for the second quarter ended September 30 at Rs.107.85 crore against Rs.93.75 crore in the same period in the previous year with a 7.3 per cent rise in total income at Rs.8,294.50 crore against Rs. 7,729.98 crore.
Addressing presspersons here on Thursday, N. Kamakodi, Managing Director and CEO, said the bank could maintain its growth and cost factors had been kept very much under control.
He said the bank continued its focus on SME (small medium enterprises) trading and agriculture segments and these segments accounted for 65-70 per cent of the bank’s loan book.
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Though the bank cut its lending rates, there was a drop in cost of deposits, resulting in an expansion in margins. The net interest margin was comfortable at 3.74 per cent.
The net interest income increased by 16.4 per cent to Rs.240.10 crore during the quarter from Rs.206.21 crore a year-earlier.
Deposits rose 10.6 per cent to Rs.25,616 crore as on September 30 from Rs.23,152 crore as on September 30, 2014. Advances climbed 12 per cent to Rs.18,935 crore from Rs.16,908 crore.
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Considering a credit growth of 9-9.5 per cent for the banking industry, Mr. Kamakodi said, this should be considered comfortable.