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The Kumbakonam-headquartered CUB has reported 22 per cent growth in its net profit at ₹154 crore for the quarter ended December 31, 2017 as against ₹127 crore in the year-ago period.
N Kamakodi, Managing Director and Chief Executive Officer of the bank attributed the significant increase in bottomline to robust growth in interest income.
Though its other income fell 15 per cent at ₹122 crore (from ₹143 crore in Q3 of previous fiscal), CUB’s net interest income saw an increase of 19 per cent at ₹365 crore in the third quarter of this fiscal when compared with ₹307 crore in the year-ago period. Its operating profit grew by eight per cent at ₹296 crore (₹274 crore).
Slippages stood at ₹132 crore during the third quarter. The bank was reporting slippages of ₹140-150 crore in the previous quarters. Recoveries/upgradations stood at ₹50.8 crore in Q3 of this fiscal. Its gross NPA went up to 3.30 per cent from 2.98 per cent in the year-ago quarter and 3.07 per cent in the preceding quarter. Net NPA increased to 1.74 per cent from 1.72 per cent in Q3 of previous fiscal, but fell from 1.76 per cent in Q2 of this fiscal.
The provision coverage ratio stood at 65 per cent as of December 31, 2017. The bank’s return on assets stood at 1.64 per cent. CUB also announced its new technology initiative FASTag facility for paying toll charges on the highways. Kamakodi said CUB was on track to achieve credit growth of 15-18 per cent for the current fiscal.
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