Comments
Old private sector lender City Union Bank (CUB) has recorded a 30 per cent growth in its net profit to ₹225 crore for the first quarter ended June 30, 2022, as compared to ₹173 crore in the year-ago quarter, aided by growth in operating profit and lower provisions.
The bank’s operating profit grew by 17 per cent to ₹447 crore in Q1FY23 from ₹381 crore in the year-ago quarter, supported by growth in income.
Related Stories
City Union Bank, Aditya Birla Health ink bancassurance pact
This is the third such tie-up for CUB after pacts with Star Health and Care HealthWhile interest income rose 10 per cent to ₹1,099 crore in June 2022 quarter from ₹997 crore in June 2021 quarter, the non-interest income also grew by 12 per cent to ₹218 crore from ₹193 crore. Total income grew 11 per cent to ₹1,317 crore (₹1,191 crore). Net interest income rose 17 per cent to ₹525 crore (₹448 crore).
Provisions (other than tax) and contingencies stood at ₹152 crore as compared to ₹168 crore in Q1 of the previous fiscal.
Net NPAs down
Asset quality of the bank continues to show improvements as the gross non-performing asset (GNPA) ratio declined to 4.65 per cent from 5.59 per cent in the June 2021 quarter and 4.70 per cent in March 2022 quarter, while net NPA fell to 2.89 per cent from 3.49 per cent in the year-ago quarter and 2.95 per cent in the preceding quarter.
“It has been an all-round performance in June 2022 quarter. The NPA recoveries have happened in such a way that the gap between the recovery and slippages is only ₹20 crore. Also, we managed our treasury in a good way and hence the depreciation in the investment book is also minimum, We were able to see traction across all parameters,” N Kamakoti, MD & CEO of CUB, told BusinessLine while discussing the June 2022 quarter performance of the bank.
CUB’s return on assets at 1.46 per cent improved over Q1FY22 (1.29%) and Q4FY22 (1.42 per cent).
Total business grew by 11 per cent to ₹89,706 crore (₹81,001 crore in Q1 of last fiscal). While deposits grew by 9 per cent to ₹48,722 crore, advances increased by 12 per cent to ₹40,934 crore. CASA grew by 25 per cent to ₹15,387 crore.
As of June 30, 2022, the bank’s capital adequacy, as per Reserve Bank of India guidelines on Basel III norms, was 20.48 per cent and Tier-1 capital adequacy was 19.42 per cent, well above regulatory requirements, it said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.