City Union Bank’s (CUB) net profit for the full year 2016-17 crossed ₹500 crore for the first time in its history, while asset quality improved on a sequential basis.
For FY17, CUB’s net profit grew 13 per cent to ₹503 crore, against ₹445 crore in FY16. Operating profit was 19 per cent higher at ₹994 crore (₹833 crore). Net interest income was up 22 per cent at ₹1,199 crore (₹981 crore).
“Considering the overall banking industry, we have been able to show a decent performance. Our credit growth for the year was in double-digits while industry growth was in single digit,” said the bank’s MD and CEO, N Kamakodi.
Advances grew 13 per cent to ₹24,112 crore (₹21,253 crore), while total deposits went up 11 per cent to ₹30,116 (₹27,158 crore).
For the quarter ended March 31, 2017, the bank’s net profit grew 15 per cent to ₹129 crore, against ₹112 crore in the year-ago period, helped by an 11 per cent growth in operating profit to ₹248 crore (₹224 crore).
A 17 per cent growth in net interest income at ₹311 crore (₹264 crore) aided the company’s bottomline during the quarter. Its net NPA was higher at 1.71 per cent in Q4 (1.53 per cent). However, it was marginally down from 1.72 per cent in Q3 of FY17.
“After several quarters, we have seen a sequential reduction in NPA. But we have to wait and see whether this trend will continue,” Kamakodi said.
The board has declared a dividend of 30 per cent (₹0.30 per equity share) on the face value of ₹1 and also a bonus issue in the ratio of 1:10.
Kamakodi also announced CUB’s new digital banking initiatives that include ‘selfie banking’ and money spend tracker facilities.