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Private sector lender City Union Bank (CUB) has registered a 16 per cent increase in net profit at ₹168 crore for the quarter ended September 30, 2018, against ₹145 crore in the year-ago period.
Lower provisions, better NPA management, and higher recoveries helped the bank post growth in its bottomline during the second quarter amid fall in operating profit.
Its operating profit was down at ₹296 crore, compared to ₹320 crore in the year-ago period due to lower non-interest income (treasury operations).
Net interest income grew 12 per cent at ₹398 crore from ₹355 crore in Q2 of the previous fiscal.
Net interest margin stood at 4.32 per cent (4.46 per cent). Total provisions and contingencies stood at ₹128 crore against ₹175 crore.
Provisions for NPAs were lower during Q2 of this fiscal at ₹47 crore, compared to ₹87 crore in the year-ago period.
“Performance has been steady, given the developments in the banking sector. Our performance was satisfactory in Q2. Going forward, we expect to maintain the momentum in the next two quarters, though there will be pressures on operating profit,” said N Kamakodi, Managing Director and CEO.
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