City Union Bank reports 18.5% drop in Q2 profit at Rs 157.7 crore

Net interest income up 15.4% to Rs 475.2 crore, improvement in NPA position

City Union Bank (CUB) has reported a 18.5 per cent drop in profit to Rs 157.7 crore during the quarter ended September 30, 2020, from Rs 193.5 crore a year ago.

The bank’s profit after tax (PAT) stood at Rs 158 cr in Q2FY21 as against Rs 194 cr in Q2FY20. PAT for the quarter was impacted on account of additional provision made to the tune of Rs 115 cr towards Covid-19 to meet any future contingency.

Net interest income (NII) stood at Rs 475.2 crore as compared to Rs 411.5 crore, up 15.4 per cent.

Provisions stood at Rs 177 crore during the second quarter as compared to Rs 157 crore in the first quarter and Rs 107.95 crore during the second quarter of last year.

The lender's net NPA dropped to 1.81 per cent during the second quarter from 2.11 per cent in the first quarter and 1.90 per cent during the second quarter of last year. Gross NPA was at 3.44 per cent during the second quarter as compared to 3.90 per cent in the first quarter and 3.41 per cent last year in the second quarter.

The bank's CAR stood at 17.36 per cent as compared to 16.77 per cent in the first quarter and 15.49 per cent during the second quarter ended September 2019.