City Union Bank Q1 net rose marginally to ₹227 cr.

August 11, 2023 07:57 pm | Updated 07:57 pm IST - CHENNAI

City Union Bank Ltd. (CUB) reported standalone net profit for the June quarter rose marginally to ₹227 crore from ₹225 crore during the year-earlier period due to a drop in other income and increase in non-performing assets.

“Last year in the comparable quarter, we had a big recovery. Basically, it is a stable performance and comparable with last year. We are expecting a double-digit growth for full year,” said its CEO and MD N. Kamakodi.

Interest income grew by 15% to ₹1,266 crore, net interest income remained flat at ₹523 crore (₹525 crore). Net interest margin declined to 3.67% from 3.95%, the private sector lender said.

Gross non-performing assets increased to 4.91% of total advances from 4.65%, while net non-performing assets declined to 2.51% from 2.89%.

“There was a slippage between the end of the last quarter and audit that have not been reckoned this year. Otherwise, the recovery would have been more than ₹80 crore. It will be set right in the coming quarter,” Mr. Kamakodi said.

Total business grew by 5% to ₹94,060 crore, of which deposits accounted for ₹51,655 crore. Current account savings account grew by 3% to ₹15,893 crore.

The bank had a capital adequacy ratio of 23.02%. The bank made a provision of ₹187 crore against ₹222 crore. Provision coverage ratio stood at 70% against 64%.

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