 "City Union Bank Q1 profit up 15% at Rs 186 crore on prudent risk management")
City Union Bank's (CUB) net profit increased 15 per cent to Rs 186 crore during the quarter ended June 30, 2019 (Q1FY20) from Rs 162 crore in the year ago period.
N Kamakodi, managing director & CEO, CUB said that overall, the peformance of the bank has been satisfactory in the first quarter, mainly due to the lender's prudent risk management practices.
The bank continues to stay away from large corporate consortium lendings and infrastucture sector advances.
Net interest income rose by 11 per cent to Rs 417 crore in the June quarter from Rs 375 crore in the year ago period.
CASA increased 14 per cent to Rs 9,161 crore in Q1 from Rs 8,038 crore and the CASA ratio stood at 23 per cent of total deposits.
Gross NPA of the bank was Rs 1,076 crore at the end of Q1, at 3.34 per cent of gross advances. Net NPA of the bank stood at Rs. 600 Crore at 1.89 per cent of net advances.
"The slippage in the Q1 was lower than what was recorded in the Q4 of last financial year. We have given our forecast on our annual slippage ratio, and what you see in the first quarter can be termed as an aberration”, he said.
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