City Union Bank has reported a 16 per cent increase in its net profit at ₹253 crore for the quarter ended December 31, 2023, when compared with ₹218 crore in the year-ago period, helped by lower provisions amid a decline in operating profit.

Its operating profit fell 27 per cent at ₹364 crore when compared with ₹497 crore in Q3 of the previous fiscal, according to a statement. Provisions (other than tax) and contingencies were significantly lower at ₹46 crore when compared with ₹224 crore.

Interest income grew 10 per cent at ₹1,326 crore as against ₹1,206 crore, while non-interest income reported was lower at ₹193 crore (₹224 crore). Net interest income declined by seven per cent at ₹516 crore (₹556 crore).

Net interest margin (NIM) stood at 3.5 per cent in Q3 of this fiscal as against 3.88 per cent a year ago.

Gross NPA reduced to 4.47 per cent as of the December 2023 quarter when compared with 4.62 per cent in the year-ago quarter and 4.66 per cent in the preceding quarter. Net NPA also dropped to 2.19 per cent from 2.67 per cent in the year-ago quarter and 2.34 per cent from Q2 of this fiscal.

Deposits of the bank increased by five per cent to ₹52,726 crore when compared with ₹49,997 crore, while advances grew two per cent to ₹44,017 crore (₹43,009 crore).

For the 9 months ended December 31, 2023, the company reported a net profit of ₹761 crore when compared with ₹719 crore in the year-ago period, an increase of six per cent.

As of December 31, 2023, the Bank’s capital adequacy, as per Reserve Bank of India (RBI) guidelines on Basel III norms, was 21.87 per cent and Tier-1 capital adequacy was 20.83 per cent, well above regulatory requirements, it said.

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