City Union Bank net up 5%

Total income of the bank has reported a 14% growth

The City Union Bank (CUB) has reported a five per cent rise in net profit during the quarter ended December 31 to Rs 89 crore, which stood at Rs 85 crore during the corresponding quarter of last financial year.

N Kamakodi, managing director, attributed the lower percentage growth mainly to high expenses, which increased around 18 per cent due to high tax provisions, increase in operational and interest expenses during the quarter.

Total income of the Kumbakonam-based bank reported a 14 per cent growth to Rs 711 crore during the third quarter.

Total business of the bank as of December 31 grew 10 per cent to Rs 36,941 crore. Of the total business, deposits grew 11 per cent to Rs 21,116 crore and advances grew nine per cent to Rs 15,825 crore. Gross and net NPA stood at 1.70 per cent and 0.89 per cent, respectively, up from 1.23 per cent and 0.63 per cent, respectively, during the corresponding period of last financial year.  Commenting on capital adequacy ratio (CAR), the managing director said it was around 13.61 per cent during the quarter and the CD ratio was around 75 per cent.