Money & Banking

City Union Bank reports ₹95-crore Q4 loss on high provisions

Our Bureau Chennai | Updated on June 19, 2020

City Union Bank (CUB) has reported a net loss of ₹95 crore for the fourth quarter ended March 31, against a net profit of ₹175 crore in the year-ago period, due to high provisioning.

The bank’s gross profit was marginally lower at ₹335 crore (₹338 crore), on the back of the almost flat net interest income at ₹420 crore.

While other income grew 22 per cent at ₹179 crore (₹147 crore), operating expenses were higher by 15 per cent at ₹264 crore (₹230 crore). Provisions and contingencies were higher at ₹430 crore (₹163 crore).

Full-year profit falls

For the full year ended March 31, net profit stood at ₹476 crore, down 30 per cent from ₹683 crore in FY19.

However, gross profit was higher by 8 per cent at ₹1,341 crore (₹1,240 crore). Net interest income grew 4 per cent to ₹1675 crore from ₹1,611 crore.

“The bank, based on basic available information at this point of time and as a prudent measure, has made a provision of ₹125 crore in the current quarter, which includes an adhoc Covid-19 provision of ₹102 crore over and above the RBI prescribed norms,” said a statement.

For FY20, advances and deposits grew 5 per cent and 6 per cent, respectively, at ₹40,833 crore (₹38,448 crore) and ₹34,576 crore (₹33,065 crore).

Gross NPA increased to 4.09 per cent as of March 2020, up from 2.95 per cent in the year-ago quarter and 3.50 per cent from Q3 of FY20. Net NPA also increased to 2.29 per cent, up from 1.81 per cent in the year-ago period and 1.95 per cent in the December 2019 quarter.

Published on June 19, 2020

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