City Union Bank Q3 profit rises 15%

City Union Bank(CUB)’s total income also improved by 10.07 per cent to Rs. 1,086.45 crore during the quarter, against the previous year’s income of Rs. 987.05 crore

Net profit of City Union Bank (CUB) rose by 15 per cent to Rs. 178.10 crore in the third quarter of FY19 against the Rs. 154.80 crore the lender recorded in the same period last year.

Gross profit of the bank improved marginally by 4 per cent to Rs. 306.8 crore (Rs. 296.5 crore) on a year-on-year basis as on December 2018. The bank’s interest income grew by 11.70 per cent to Rs. 966.62 crore from Rs. 865.36 crore in the same period last year.

Net interest income of the bank increased from Rs. 365.14 crore recorded last December to Rs. 418.09 crore in the current year, marking a 15 per cent increase on year-on-year basis. Net interest margin (NIM) of the bank stood at 4.41 per cent.

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CUB’s total income also improved by 10.07 per cent to Rs. 1,086.45 crore during the quarter, against the previous year’s income of Rs. 987.05 crore. While the gross non-performing assets (NPAs) of the bank improved from 3.30 per cent in December 2017 to 2.91 per cent during the current year, net NPA remains unchanged at 1.74 per cent on year-on-year basis.

“Although slippage ratio for Q2 is at 2.16 per cent, overall, we are seeing a decreasing trend in NPA,” said N Kamakodi, MD and CEO, City Union Bank.

Gross NPA in value saw an increase of 4 per cent to Rs. 891 crore (Rs. 860 crore), while net NPA increased by 18 per cent to Rs. 528 crore (Rs. 448 crore).

“We have said that our incremental slippage ratio for the current year to closing advances will be 1.75 to 2 per cent and we are already on our target,” Kamakodi added