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City Union Bank (CUB) has reported a 17 per cent growth in its net profit at ₹145 crore for the quarter ended September 30, 2017, from ₹124 crore in the year-ago period.
A steady growth in advances and a significant rise in net interest income enabled the bank to post a sizeable Q2 profit.
“We are able to see credit growth slightly inching up,” N Kamakodi, MD and CEO, said here. “We are also able to see some stabilisation on the NPA recovery front. We will be able to accelerate growth after seeing at least three-four quarters of stability in terms of NPA collections. Overall, it was a decent performance compared to the banking industry trend.”
CUB’s gross profit grew 35 per cent at ₹320 crore (₹237 crore), aided by a rise in net interest income, which went up 18 per cent at ₹356 crore (₹301 crore). Net interest margin stood at 4.46 per cent.
Advances grew 14 per cent to ₹25,389 crore (₹22,215 crore), while total deposits went up 9 per cent to ₹30,882 crore (₹28,393 crore). Slippages stood at ₹147 crore (₹122 crore) while collections were about ₹44 crore (₹45 crore).
The private lender’s net NPA went up to 1.76 per cent in the quarter, up from 1.63 per cent in Q2 FY17, but decreased from 1.79 per cent in Q1 FY18. The provision coverage ratio stood at 63 per cent as on September 30. The bank’s return on assets for Q2 stood at 1.58 per cent.
During the period under review, CUB introduced two new features — applying for a loan online and viewing the bank balance on Facebook.
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