Chennai: Kumbakonam based private sector lender, City Union Bank has announced that it registered a 15 per cent rise in net profit as well as net interest income for the third quarter of FY19.
Managing director and CEO, City Union Bank, N Kamakodi announced that the net profit of City Union Bank (CUB) rose to Rs 178.10 crore in the third quarter of FY19 as against Rs 154.80 crore that the bank recorded during the same period the previous year. Interest too grew to Rs 418.09 crore from Rs 365.14 crore, he said.
Aided by strong performance, CUB’s total income improved by 10.07 per cent to Rs 1,086.45 crore during the quarter, against the previous year’s income of Rs 987.05 crore. The net profit after tax for nine-month period as of 31 December 2018 stood at Rs 507.74 compared to Rs 439.87 during the previous nine-month duration in FY18.
On the asset quality front, the gross and net NPA levels stood at a healthy 2.91 per cent and 1.74 per cent respectively as on 31 December 2018. The provision coverage ratio stood at 65 per cent. ‘Although the overall slippage ratio for Q2 is at 2.16 per cent, we are seeing a decreasing trend in NPA,’ said Kamakodi.
The bank said the trading and MSME loan segments earn high yields which constitute about 51 per cent of advances. Diversified credit portfolio and coupled with lower ticket size backed by adequate collaterals reduce credit risk. As on 31 December 2018 CUB’s network comprised 616 bank branches and 1,656 ATMs across the country.