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The board of directors of City Union Bank have resolved to meet on August 30 to get shareholders’ approval for augmentation of capital by up to Rs 350 crore (inclusive of premium) through a qualified institutional placement.
“We will only be renewing it. We may raise Rs 350 crore through QIP during the current fiscal depending on market conditions,” the bank’s Chief Executive N. Kamakodi told Business Line .
At the August 30 meeting, the bank will also consider passing a bifurcating resolution on the 40 per cent cap on foreign ownership, according to regulatory prescription, by limiting it to 5 per cent for non-resident Indians (NRIs) and 35 per cent for foreign institutional investors, Kamakodi said.
The bank has reported a 22.2 per cent growth in its net profit for the quarter ended June 30 at Rs 90.29 crore against Rs 73.89 crore during the corresponding quarter of the earlier fiscal.
Its net interest income grew 35.8 per cent to Rs 187.35 crore (Rs 137.94 crore).
Total deposits increased by 20 per cent to Rs 20,516 crore (Rs 17,062 crore) and advances to Rs 15,388 crore (Rs 12,773 crore).
The gross and net NPA (non-performing asset) levels stood at 1.25 per cent and 0.63 per cent, respectively.
Taking its first quarter (April-June 2013) performance into account, he said, “It is satisfactory at current conditions, but we are hoping for a speedy recovery of the general economic conditions.”
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