City Union Bank has reported an 11 per cent increase in its net profit at ₹218-crore for the quarter ended December 31, 2022, when compared with ₹196 crore in the year-ago period on the back of a strong rise in operating profit.

Its operating profit grew 35 per cent at ₹497 crore when compared with ₹370 crore in Q3 of the previous fiscal, according to a statement.

Interest income grew 16 per cent at ₹1,206 crore as against ₹1,035 crore, while non-interest income reported an increase of 40 per cent at ₹224 crore (₹160 crore). Net interest income was higher by 13 per cent at ₹556 crore (₹490 crore).

Net interest margin (NIM) stood at 3.9 per cent in Q3 of this fiscal as against 4 per cent a year ago.

Total provisions were higher at ₹280 crore during December 2022 quarter when compared with ₹174 crore in the year-ago quarter.

Gross NPA reduced to 4.62 per cent as of December 2022 quarter when compared with 5.21 per cent in the year-ago quarter and 4.32 per cent in the preceding quarter. Net NPA also dropped to 2.67 per cent from 3.44 per cent in the year-ago quarter and 2.69 per cent from Q2 of this fiscal.

For the 9 months ended December 31, 2022, the company reported a net profit of ₹719 crore when compared with ₹551 crore in the year-ago period, an increase of 31 per cent.

Deposits of the bank increased by 7 per cent to ₹49,997 crore when compared with ₹46,722 crore, while advances grew 12 per cent to ₹43,009 (₹38,387 crore).

As of December 31, 2022, The Bank’s capital adequacy, as per Reserve Bank of India (RBI) guidelines on Basel III norms, was 20.47 per cent and Tier-1 capital adequacy was 19.39 per cent, well above regulatory requirements, it said.

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