City Union Bank has posted 40 per cent growth in net profit at Rs 71.98 crore for the quarter ended March 31, 2012, against Rs 51.40 crore in the corresponding previous period.

Total income went up by 37 per cent to Rs 537.31 crore, from Rs 391.10 crore.

At end March, 2012 the net NPAs (non performing assets) had come down to 0.44 per cent from 0.52 per cent in percentage terms.

Lower provisioning

However, in absolute terms, gross NPAs went up to Rs 123.5 crore during the year from Rs 112.5 crore the previous year.

For the financial year 2011-12, the company has reported a net profit of Rs 280.25 crore. This represents an over 30 per cent growth over the Rs 215.05 crore net profit in the previous year.

Mr N. Kamakodi, Managing Director and CEO of City Union Bank, attributed the growth in net profit to lower provisioning for NPA during the year.

The bank had provided Rs 57 crore for NPA during the year from Rs 67 crore the previous year.

The bank's restructured loans portfolio has come down to Rs 268 crore from its peak of Rs 533 crore in 2009, he said.

Of the total deposits, CASA (current account and savings account) form 18-19 per cent, while the rest are term deposits.

Mr Kamakodi said the bank has been maintaining capital adequacy ratio well above the minimum levels prescribed by the RBI.

Capital adequacy

As on March 31, 2012, the total capital adequacy ratio stood at 12.57 per cent.

As of now, the bank has 300 branches and 500 ATMs across the country. During the current financial year, it plans to add another 100 branches and 300 ATMs to its network.

>rravikumar@thehindu.co.in

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