City Union Bank Q2 net profit up 11% at Rs 94 cr

City Union Bank Ltd has posted a growth of 11% in net profit of Rs 93.7 crore for the quarter ended September 30, 2014 as compared to Rs 84.3 crore for the quarter ended September 30, 2013. Total income has increased from Rs 697.1 crore for the quarter ended September 30, 2013 to Rs 772.9 crore for the quarter ended September 30, 2014, thus registering a growth of 11%.

The Gross Non Performing Asset (NPA) of the bank at the end of the quarter stood at Rs 337.89 crore, which is 2% of the gross advances, compared to Rs 263.19 crore recorded during the same quarter of last year, which was 1.66% of the gross advances.

The Bank has been able to bring in stability in profitability as it maintains its policy that it would not give big ticket advances or consortium lending and not offering large advances to infrastructure projects, said N Kamakodi, MD and CEO, City Union Bank. Advances above Rs 100 crore are considered as big ticket advances, he added.

He added that the demand is yet to pick up in the market and once the general economic conditions see better growth, the market would also grow higher. The Bank is working hard to get a 10% growth this fiscal year compared to the last year.

Almost two-third of the Bank's loan book comes from agriculture, SME manufacturing and trading.