Our Bureau City Union Bank has reported a 11 per cent drop in net profit at ₹170 crore for the quarter ended December 31, 2020 when compared with ₹192 crore in the year-ago period due to additional provisions made for future contingency.

Its operating profit grew 49 per cent at ₹458 crore (₹308 crore), according to a statement.

Interest income stood at ₹1,048 crore (₹1,061 crore), while non-interest income grew 61 per cent at ₹230 crore (₹142 crore). Net interest income was higher by 14 per cent at ₹489 crore (₹427 crore). Net interest margin stood at 4.16 per cent (3.96 per cent) a year-ago. NIM has increased sequentially from 3.98 per cent in Q1, 4.12 per cent Q2 FY 21 of this fiscal.

Total provisions were at higher ₹288.5 crore (₹116 crore). During December 2020 quarter, the bank has made an additional provision of ₹125 crore to meet any future contingency arising out of Covid-19 pandemic. Thus, the total provision in this regard held by the Bank as on December 31, 2020 was ₹465 crore.

Gross NPA fell to 2.94 per cent (3.5 per cent) and 3.44 per cent in the preceding quarter. Net NPA dropped to 1.47 per cent (1.95 per cent) and 1.81 per cent from Q2 of this fiscal.

Total Advances increased by 8 per cent to ₹36,504 crore from ₹33828 crore, while deposits stood at ₹43,288 crore as against ₹39,812 crore, a growth of 9 per cent.

During Q3, CUB restructured 60 MSME borrower accounts to the tune of ₹321 crore. Total value of restructured MSME accounts as of December 2020 stood at ₹807 crore comprising 233 borrowers. Restructured accounts constituted 2.21 per cent of advances, the bank said.

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