City Union Bank posts 12 per cent profit in Q1
NEW DELHI: Tamil Nadu-based City Union Bank (CUB) posted a net profit of Rs 173 crore in the April-June quarter of 2020-21, a 12% increase over Rs 154 crore in the same quarter last year. The bank, however, reported a decline in the total income to Rs 1,193 crore in the first quarter of 2020-21 from Rs 1,209 crore in the same quarter previous year. Its interest income during the quarter also declined 5% to Rs 997 crore.
The bank continues to face asset quality problems as Gross NPAs increased 51% year-on-year to Rs 2,035 crore, which is 5.59% of the total outstanding loan. In the first quarter of 2019-20, the bank’s gross NPA was 3.9%.
Deposits during the first quarter increased by 9% to Rs 41,026 crore while advances grew by 5% to Rs 34,536 crore. CASA deposits increased by 22% from Rs 10,098 crore to Rs 12,299 crore. CASA deposits stood at 28% to total deposits. It reported a net interest margin of 3.86% and Return on Assets of 1.29%. The Bank’s capital adequacy as on 30 June 2021 as per RBI guidelines on Basel III norms is 19.58%.