Kumbakonam-headquartered City Union Bank’s profit after tax slipped to ₹158 crore for the quarter ended September 2020 when compared to the ₹194 crore clocked during the corresponding quarter of the earlier fiscal.
The bank, in a statement, said that the profit before tax for the quarter was impacted on account of additional provision of ₹115 crore made towards Covid to meet future contingencies.
The bank already made a provision of ₹225 cr for Covid-19 as on June 30, 2020; during the current quarter, with the additional provision of ₹115 crore, total provision towards Covid-19 at the end of the first half of the current fiscal has touched ₹340 crore.
The operating profit at the end of the second quarter was higher at ₹385 crore (₹347 crore) and net interest income at ₹475 crore (₹412 crore), but non-interest income dipped to ₹169 crore (₹195 crore). The bank attributed the drop in non-interest income to the instructions from the Finance Ministry on waiver of charges due to Covid.
Treasury income, too, slipped to ₹69 crore (₹79 crore).
Gross NPA increased marginally from 3.41 per cent to 3.44 per cent, but net NPA fell to 1.81 per cent from 1.90 per cent.
The bank has restructured 11 standard accounts to the tune of ₹79 crore during the second quarter. The total outstanding restructured standard accounts at the end of the first half of the current fiscal is ₹478 crore.