City Union Bank eyes ₹1,000 cr. net profit during FY24

City Union Bank Ltd. (CUB) for the first time is likely to cross the ₹1,000 crore mark in its net profit during the current fiscal, said its MD and CEO N. Kamakodi.

City Union Bank Ltd. (CUB) for the first time is likely to cross the ₹1,000 crore mark in its net profit during the current fiscal, said its MD and CEO N. Kamakodi.

“We closed the first half with a net profit of ₹508 crore and hope to cross four-digit mark for the first time during this fiscal,” he said during an interaction.

“The bank hopes to achieve this figure despite the headwinds in the operating profit. This may be due to the positive contribution from the credit cost,” he said.

According to him, the current quarter is the highest-ever profit the bank had declared in its 120-year history. During FY23, CUB had posted a net profit of ₹937 crore.

Regarding the slippages, he said it has come down to 2.06 of advances to closing advances, almost equal to pre-COVID level. For the first time in the recent past, live recovery surpassed the live slippages and this trend is expected to continue.

Net non-performing assets (NPAs) have come down below the ₹1,000 crore mark after many quarters, and SMA2 numbers to total advances stood at 2.05% against 2.45% in Q1.

The private sector lender is also looking at getting its net NPA to the pre-COVID level of 1.5%-2% first and then between 1% and 1.5% in the next few quarters.