Money & Banking

City Union Bank Q1 net rises 15 per cent

Our Bureau Chennai | Updated on August 08, 2019 Published on August 08, 2019

Treasury income grew 131 per cent at ₹45 crore, which boosted other income

Private sector lender City Union Bank has reported a 15 per cent increase in net profit at ₹186 crore for the quarter ended June 30, 2019, against ₹162 crore in the year-ago period.

Its operating profit grew 17 per cent at ₹351 crore, against ₹299 crore on the back of higher net interest income, which grew 11 per cent at ₹417 crore (₹375 crore in Q1 of the previous fiscal), and other income, which rose 26 per cent at ₹163 crore (₹129 crore).

Treasury income grew 131 per cent at ₹45 crore, which boosted other income.

Provisions were higher due to more slippages among smaller accounts, at ₹166 crore for Q1 of this fiscal, compared to ₹138 crore in the year-ago quarter.

“While our performance is satisfactory given the banking sector trends, a major factor for our decent performance is the risk management practices.

“We stayed away from risky exposures,” said N Kamakodi, MD and CEO of the bank

However, asset quality saw some setback, with gross non-performing assets (NPAs) increasing to 3.34 per cent as of June this fiscal, from 3.02 per cent in the prior-year quarter, while net NPAs increased to 1.89 per cent, from 1.70 per cent during the same period.

During the June quarter, fresh NPAs were ₹200 crore (₹126 crore in Q1 of previous fiscal), while it recovered ₹80 crore (₹61 crore).

Advances grew 14 per cent to ₹32,229 crore (₹28,215 crore as of June 2018), while total deposits went up by 16 per cent to ₹39,077 crore (₹33,597 crore).

Current account, savings account (CASA) increased by 14 per cent to ₹9,161 crore, from ₹8,038 crore, and the CASA ratio stood at 23 per cent of total deposits.

Net banking

The provision coverage ratio stood at 65 per cent as on June 30, 2019.

The bank’s return on assets stood at 1.63 per cent during the first quarter of this fiscal.

Kamakoti said the bank was in the process of introducing API-based e-mandate authentication and auto payments for various payments, including utility bill payments, through net banking.

Published on August 08, 2019
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