City Union Bank (CUB) has reported a 14 per cent increase in its net profit at ₹140 crore for the quarter ended June 30, 2017, as against ₹124 crore in the year-ago period, on the back of 26 per cent growth in operating profit.
Net interest margin (NIM) stood at 4.47 per cent compared with 4.07 per cent.
“The bank’s Q1 performance was better compared with its peers and industry. Overall, I would say it has been a decent quarter,” said N Kamakodi, Managing Director and Chief Executive Officer.
Advances grew 13 per cent to ₹24,058 crore (₹21,216 crore as of June 2016), while total deposits went up by 9 per cent to ₹30,468 crore (₹27,936 crore).
Its net non-performing assets (NPAs) increased to 1.79 per cent as of June this year from 1.71 per cent in the March quarter and 1.59 per cent a year ago. The provision-coverage ratio stood at 62 per cent as on June 30, 2017.
Kamakodi said that NPA levels were moderating and the bank expects to contain net NPAs in the 1.75-1.99 per cent range by the end of this fiscal.
Though there were improvements, collections and recoveries were not at expected levels.
The bank’s return on assets stood at 1.60 per cent during the first quarter.
CUB has given a growth guidance of 15-18 per cent for this fiscal and Kamakodi said the bank was entering into a falling interest-rate regime.