City Union Bank Q3 net drops 11% to Rs 170 cr, huge spike in provisions

During the quarter it made Rs 125 cr additional provision towards Covid contingencies, total provisions at Rs 465 cr as on December 31, 2020

City Union Bank has reported an 11 per cent drop in net profit to Rs 169.9 crore during the quarter ended December 31, 2020, from Rs 192.43 crore, during the same period a year ago.

N Kamakodi, CEO, City Union Bank, said that the lender's operating profit has grown 19 per cent year-on-year. Extra provisions for Covid resulted in a dip in profit after tax. 

Provisions during the third quarter of 2020-21 stood at Rs 218.50 crore as compared to Rs 81 crore a year ago. The bank said that during the quarter it made an additional provision of Rs 125 crore towards contingencies arising out of Covid pandemic and held overall provisions of Rs 465 crore on December 31, 2020. In addition, during the quarter an interest reversal of Rs 30 crore was made and the total interest reversal upto December 31, 2020 was Rs 55 crore.

The bank's interest earned stood at Rs 1,048.02 crore during the third quarter of 2020-21 as compared to Rs 1,060.86 crore, a year ago.

Gross NPA dropped to Rs 1,071.7 crore from Rs 1185.42 crore, in terms of per centage it dropped to 2.94 per cent from 3.5 per cent. Net NPA dropped to Rs 527.1 crore from Rs 649.40 crore, in terms of per centage it dropped to 1.47 per ent from 1.95 per cent.