City Union Bank profit at Rs 1.68 bn in Q2, gross NPA down marginally

NPA provisioning for the quarter has declined 47% year-on-year to Rs 680 million

City Union Bank has reported a net profit of Rs 1.68 billion in Q2 FY19 as against Rs 1.45 billion in the corresponding quarter of last year.

N Kamakodi, managing director and chief executive officer of the bank, said profit increased as provision dropped. Provisions for the quarter declined by 47 per cent year-on-year (y-o-y) to Rs 680 million.

The bank’s operating profit dropped because of a slowdown in treasury income, which dropped to Rs 2.96 billion from Rs 3.20 billion.

Revenue has improved by 4.9 per cent y-o-y to Rs 10.45 billion from Rs 9.96 billion. The bank’s net interest income for the quarter was Rs 3.98 billion as against Rs 3.55 billion — a y-o-y growth of 12.2 per cent.

The bank’s gross non-performing assets (NPAs) for Q2 FY19 stood at 2.9 per cent while the net NPA for the quarter was flat at 1.7 per cent. Slippages during Q2 was Rs 1.36 billion as against Rs 1.47 billion a year ago.

Recovery and upgradation during the quarter was Rs 6.57 billion against Rs 4.44 billion.