Money & Banking

City Union Bank posts Q3 profit of ₹192 crore

Our Bureau Chennai | Updated on February 12, 2020 Published on February 12, 2020

N Kamakodi, CEO, City Union Bank   -  Bijoy Ghosh

Private sector lender City Union Bank (CUB) posted an 8 per cent year-on-year growth in net profit at ₹192 crore in the third quarter of FY20. The bank’s net profit for the same quarter in the previous year stood at ₹178 crore. In the September quarter, the net profit was ₹194 crore.

“This (net profit) is due to a general improvement in business. We could record about 10 per cent growth in overall advances, which has finally resulted in improvement in net profit. The reduction in taxation rates also contributed to the improvement,” said N Kamakodi, MD and CEO, City Union Bank, at a press conference held here to announce the bank’s quarterly results.

Total income of the bank grew nearly by 11 per cent to ₹1,203 crore during Q3 FY20 from ₹1,086 crore recorded during the comparable period last year. Interest income grew by 10 per cent to ₹1,061 crore (₹967 crore), while other income for the quarter stood at ₹142 crore (₹120 crore).

Operating profit for the October-December quarter stood at ₹308 crore (₹307 crore). On a sequential basis, operating profit fell by 11 per cent from the September 2019 profit of ₹346 crore.

GNPA, NNPA

The bank’s gross non-performing assets (GNPA), as a percentage of total advances, increased to 3.50 per cent during the third quarter from the 2.91 per cent recorded a year earlier. Net NPA of the bank also increased to 1.95 per cent (1.74 per cent) during the period.

“We had about ₹230 crore addition to the GNPA in the third quarter. We also had recoveries and upgradation of about ₹127 crore and write-off of about ₹52 crore. The collection of NPA is not in proportion to the addition, which is resulting in increase in GNPA,” said Kamakodi.

Advances of the bank grew by 10 per cent to ₹33,828 crore (₹30,637 crore), while total deposits went up by 12 per cent to ₹39,812 crore (₹35,504 crore).

Provision coverage ratio for the December quarter was stable at 65 per cent, while capital adequacy ratio (CAR) stood at 15.41 per cent. Kamakodi also announced that the branch strength of CUB will be increased to 700 by the end of this fiscal. At present, the bank has 665 branches and 1,762 ATMs.

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Published on February 12, 2020
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