Despite challenging market conditions, Sundaram Finance has reported a decent performance for the fourth quarter ended March 31, 2014, and full year 2013-14, aided by better management of costs and sustained focus on asset quality.
It has reported a 11 per cent rise in net profit at Rs.100 crore for the fourth quarter ended March 31, 2014 when compared with Rs.90 crore in the year-ago period.
Its gross profit (before other income, finance costs and tax) grew to Rs.413 crore from Rs.401 crore. Net income stood at Rs.548 crore against Rs.543 crore.
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For the year ended March 31, 2014, the net profit rose by 8 per cent to Rs.443 crore from Rs.410 crore. Revenues stood at Rs.2,215 crore against Rs.2,063 crore, a growth of 7 per cent.
“This has been one of the worst periods for the CV (commercial vehicle) industry since 1997-98 with sales of medium and heavy trucks plummeting 25 per cent or more in two successive years — 2012-13 and 2013-14. In this context, our disbursements declined marginally by three per cent to Rs.9,719 crore from Rs.9,991 crore. However, asset quality has been retained at the same level we are accustomed to,” said T. T. Srinivasaraghavan, Managing Director, Sundaram Finance.
As on March 31, 2014, its gross NPA and net NPA stood at 1.23 per cent (1.04 per cent a year-ago) and 0.45 per cent, respectively.
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He stated that despite fall in disbursements, the company managed to maintain or improve market share in all its key asset segments. “CV industry is witnessing a transformation, and we are gearing ourselves to adapt to the changes and take advantages of emerging opportunities,” he added. The board has recommended a dividend of Rs.10 per share.
City Union BankCity Union Bank (CUB) reported a marginal rise in net profit at Rs.83 crore for the quarter ended March 31, 2014, as against Rs.82 crore in the year-ago period, on the back of higher provisioning.
While its operating profit was lower by 4 per cent at Rs.144 crore when compared with Rs.150 crore, net interest income grew by 7 per cent to Rs.185 crore (Rs.173 crore).
However, for the full year, the company reported a decent growth in bottom line and net interest income. For the year ended March 31, 2014, though its total business grew only by 7 per cent, net interest income registered a rise of 22 per cent at Rs.759 crore as against Rs.624 crore.
Total income was up 16 per cent at Rs.2,847 crore (Rs.2,462 crore). Net profit of the bank rose by 8 per cent to Rs.347 crore (Rs.322 crore) on a healthy operating profit, which grew by 11 per cent to Rs.581 crore (Rs.523 crore)
“The year 2013-14 was a mixed one for our bank. During the year, our net worth crossed Rs.2,000 crore and total advances grew by 6 per cent to Rs.16,224 crore,” said N. Kamakoti, Managing Director and CEO.
Total NPA provision stood at Rs.148.5 crore when compared with Rs.97 crore in 2012-13.
Final dividendAs on March 31, 204, its gross NPA and net NPA stood at 1.81 per cent (1.13 per cent) and 1.23 per cent (0.63 per cent), respectively. The Board recommend a final dividend of Re.1 per share.
Mr. Kamakoti indicated that the bank would increase the number of branches to over 500 by the end of this fiscal from 425.