City Union Bank Q2 profit up by 5%

The total income stood at Rs 702.14 crore for the quarter, compared to Rs 596.03 crore

City Union Bank (CUB) has reported a 5% increase in its net profit at Rs 84.35 crore during the second quarter as against Rs 80.42 crore, a year ago. Total income rose by 17.8% to Rs 702.14 crore for the quarter from Rs 596.03 crore.

Bank's gross non performance asset (NPA) has grown to Rs 263.28 crore from Rs 166.07 crore during the quarter with the%age of gross NPAs growing to 1.66% from 1.24%.

Net NPAs increased to Rs 131.09 crore at 0.83% from Rs 80.66 crore at 0.60% during the same quarter of last year. The provision coverage stood at 70%.

The slippage during the second quarter was around Rs 149 crore and the Bank could make Rs 40 crore recoveries as well.

N Kamakodi, managing director and CEO, City Union Bank, said "for the last eight quarters, there has been sluggishness in overall economy and on this backdrop if the Bank's performance should be seen and it is just satisfactory. We hope it will improve in the coming quarteres.

While the net interest margin (NIM) for the quarter stood at 3.51%, the net interest income rose by 27% to Rs 189. 84 crore.

The total deposits increased by 19% to Rs 21,056 crore as on September 30, 2013 from Rs 17,689 crore as on September 30, 2012 and advances went up by 18% to Rs 15,849 crore from Rs 13,437 crore.

"The bank will continue to focus on the conventional path of lending which mainly consists of agriculture, traders and SMEs. Close to 65-70% of our lending portfolio consists of these sectors," said Kamakodi.

The savings bank deposits recorded a growth of 15% and growth in CASA was 10% and the bank's balance sheet size increased by 22% to Rs 24,259 crore from Rs 20,051 crore.