City Union Bank profit up 15% on business growth

Lender reports fresh slippages of ₹190 cr.

Private sector lender City Union Bank Ltd. (CUB) has posted a 15.21% increase in its standalone net profit for the second quarter ended September 2019 to ₹168 crore on ‘strong business growth’.

During the period under review, the bank’s net interest income (NII) rose 3.4% to ₹411.55 crore and net interest margin by 3.91%. The bank’s capital adequacy metrics stood above the regulatory requirement of 15%.

    Advances grew to ₹33,279 crore from ₹29,785 crore and deposits to ₹40,451 crore from ₹34,534 crore. CASA deposits grew by 22%, and accounted for 25% of total deposits.

    Briefing the media, CUB MD and CEO N. Kamakodi said the bank recorded an overall steady growth in business and profitability. In asset quality too, the bank had maintained stable performance, he said.

    According to him, fresh slippages during the period stood at ₹190 crore and total recovery at ₹115-₹120 crore.

    Gross non-performing assets as a percentage of gross advances grew to 3.41% representing ₹1,135.44 crore, from 2.85% or ₹847.88 crore.

    Net NPAs increased to ₹624 crore (1.9%) from ₹497.78 crore (1.69%).

    “The incremental increase in NPA figures is normal and it is spread across all categories of lending. The growth prospects are better and we expect to post 15% growth in the next two quarters,” he said.

    By the end of the fourth quarter, the bank plans to open 50 more branches taking the total to 700. About 60% of the new branches will be in Tamil Nadu and rest in other parts of the country.

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    Printable version | Mar 28, 2020 9:52:36 PM |

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