City Union Bank Q3 profit up by 10%

Lender posts Rs 113.06 crore net profit against Rs 102.70 crore a year ago

City Union Bank (CUB) has reported a 10% growth in net profit at Rs 113.06 crore during the quarter ended December 31, 2015 as against Rs 102.70 crore, a year ago.

City Union Bank's MD & CEO N Kamakodi said that the performance during the quarter was driven by steady increase in NII on the back of improvement in overall business segments mainly SME/ Traders, as well as increase in NIM and overall preservation of asset quality also helped during the quarter.

“In the current environment the performance of the bank is reasonably good and satisfactory," said Kamakodi.

Capital adequacy ratio (CAR)  — Basel II — of the bank stood at 14.94% as compared to 15.82%, while Basel III was at 14.63% as compared to 15.73%.

Gross NPA of the bank stood at Rs 459.85 crore, in percentage terms it was 2.37% as compared to Rs 360.70 crore in percentage terms it was 2.12%. Net NPA of the bank stood at Rs 286.81 crore as compared to Rs 220.39 crore, a year ago.

Total income of the bank stood at Rs 850.28 crore as compared to Rs 782.28 crore. The lender has earned interest of Rs 746.97 crore as against Rs 684.50 crore.

On NPAs, he said that during the third quarter around Rs 120 crore additional NPA, while recovery and upgradation was Rs 40 crore.

The bank, which has been growing at around 20 plus percentage CAGR in the last 10 years, while in the last 2-3 years the growth moderated by 10%.

"We hope to close the current fiscal with 12-15% growth and for 2016-17 the target is 15-18% growth," said Kamakodi.

The drivers would be SME, agriculture and trading, which constitute nearly 70-75% of the book.