City Union Bank Q4 net up 19 %

City Union Bank has achieved a growth of 18.9 per cent in its net profit at Rs. 99.08 crore for the fourth quarter ended March 31, 2015, against Rs. 83.35 crore in the same period in the previous year. The growth was despite making higher provisions against non-performing assets. Addressing presspersons here on Saturday, N. Kamakodi, Managing Director and CEO, said provisions and contingencies accounted for Rs. 58.13 crore in the fourth quarter against Rs.27.09 crore in the year-ago period.

For the year ended March 31, 2015, the profit after taxation rose by 14 per cent to Rs. 395.02 crore from Rs. 347.07 crore.

Mr. Kamakodi said the gross NPA in absolute terms stood at Rs. 335.82 crore against Rs. 293.06 crore in the previous year. While additions to NPAs stood at Rs. 425 crore, upgradation and write offs accounted for Rs. 382 crore. The net NPA was Rs. 232.79 crore (Rs.197.29 crore) working out to a net NPA ratio of 1.30 per cent (1.23 per cent). The provision coverage ratio was 58 per cent.

Mr. Kamakodi said 70 to 80 per cent of NPA problem was over as the bank did not have any fresh exposure to stressed sectors during the year.

Total advances recorded a growth of 11.5 per cent and stood at Rs. 18,089 crore as on March 31, 2015, against Rs. 16.224 crore as on March 31, 2014. Total deposits rose by 9 per cent to Rs. 24,075 crore from Rs. 22,017 crore resulting in a growth of 9.35 per cent in total business to Rs. 42,164 crore from Rs. 38,241 crore in the previous year.

110 per cent dividend

To commemorate the 110 year of the bank, the directors have recommended a dividend of 110 per cent.