City Union Bank slides as RBI finds divergence of Rs 259 cr in NPAs

City Union Bank slipped 4.92% to Rs 179.60 after the private lender said that the Reserve Bank of India has discovered divergence in additional gross NPA for the financial year ended March 2022, amounting to Rs 259 crore.

The RBI conducted the on-site Inspection for Supervisory Evaluation (ISE) for the ended March 2022 from 7 October 2022 to 18 November 2022 and the final meeting concluded on 19 December 2022.

As per its final report on risk assessment it has reported divergence in additional gross non-performing assets (NPA) for the said financial year amounting to Rs 259 crore.

The private sector bank stated that divergence to the tune of Rs 259 crore consists of 13 borrower accounts with an outstanding balance of more than Rs 1 crore for an amount of Rs 230 crore and 218 borrowers with an outstanding balance of less than Rs 1 crore for an amount of Rs 29 crore.

Out of these 231 borrowers, five accounts have already been classified as NPAs by the bank during first half of FY23 and 57 accounts stand close.

City Union Bank offers a wide range of banking and financial services across India, including both domestic and International banking services. It is a private sector bank with 727 branches across 16 states and three Union territories.

The bank's net profit surged 51.8% to Rs 276.45 crore on 10.6% rise in total income to Rs 1,354.65 crore in Q2 FY23 over Q2 FY22.

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