City Union Bank posted a 23 per cent year-on-year growth in net profit for FY23 at ₹937 crore. The Kumbakonam-based private sector lender posted a net profit to ₹760 crore for the fiscal year ended FY22.
Interest income grew 15 per cent year-on-year to ₹4,714 crore (₹4,105 crore) while interest expense increased 17 per cent to ₹2,552 crore (₹2,188 crore). Net interest margin stood at 3.89 per cent.
The lender’s asset quality improved during the previous financial year. Gross non-performing asset (NPA), as a percentage of total assets, improved to 4.37 per cent (4.70 per cent). Net NPA fell to 2.36 per cent (2.95 per cent). In value terms, gross NPA fell marginally to ₹1,920 crore (₹1,933 crore) in FY23.
Total deposits grew 10 per cent to ₹52,398 crore (₹47,690 crore) while advances grew at a modest 7 per cent to ₹43,971 crore (₹41,156 crore).
Q4 profit
The bank’s net profit grew 4 per cent year-on-year in Q4FY23 to ₹218 crore (₹209 crore) while interest income for the latest quarter grew 17 per cent to ₹1,228 crore (₹1,050 crore).
The company declared a dividend of ₹1 per equity share for 2022-23. On the NSE, shares of City Union Bank closed at ₹139.45 apiece on Friday, 1.46 per cent higher than Thursday’s closing price.