Money & Banking

City Union Bank net up 13% in fourth quarter

Our Bureau Chennai | Updated on January 20, 2018 Published on May 23, 2016

N Kamakodi, MD & CEO, CUB

Full-year profit too up 13%; asset quality stable despite not-so-conducive environment, says MD

City Union Bank (CUB), among the oldest private sector banks in the country, has managed to register growth while maintaining its asset quality amid prevailing concerns over bad loans in the Indian banking sector.

For the quarter ended March 31, 2016, the bank posted a 13 per cent increase in net profit to ₹112 crore, from ₹99 crore in the year-ago period, on the back of strong growth in operating profit.

Its operating profit grew 25 per cent to ₹224 crore (₹179 crore in Q4 FY15), aided by a rise in net interest income, which went up 22 per cent to ₹264 crore (₹205 crore in the year-ago period).

For the full year ended March 31, net profit grew 13 per cent to ₹445 crore (₹395 crore in FY15). Operating profit was robust at ₹833 crore (₹693 crore).

Net interest income rose 22 per cent to ₹981 crore (₹807 crore). Net interest margin (NIM) stood at 3.81 per cent compared with 3.44 per cent.

“It was a reasonably good show given the economic situation prevailing in the country. We were able to put up a consistent performance with steady increase in deposits, advances, net profit and NIM.

“The bank was able to maintain its asset quality without any big issues, though the atmosphere was not so conducive,” N Kamakodi, Managing Director and CEO, said.

Advances grew 17 per cent to ₹21,253 crore (₹18,089 crore), while total deposits rose 13 per cent to ₹27,158 crore (₹24,075 crore).

Its net NPA went up marginally to 1.53 per cent as of March 31, from 1.30 per cent a year-ago.

“While our incremental slippages are moderating, it is still above our average level,” Kamakodi said, adding, “we have stayed away from big-ticket infrastructure and corporate consortium lending and this has definitely helped us maintain the asset quality at a better level.”

Non-executive Chairman

He also said that the bank’s board member and former Chief Financial Officer of Tata Consultancy Services S Mahalingam has been appointed Non-Executive Chairman for a period of three years effective May 4.

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Published on May 23, 2016
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