City Union Bank Q2 standalone net rises marginally to ₹281 cr.

CUB reported a marginal rise in net profit to ₹281 crore in Q2. Fresh slippages were ₹225 crore, while cash recovery was ₹299 crore. Interest income grew 10%, non-interest income 5%. NIM declined to 3.74%. Gross NPA increased to 4.66%, while net NPA declined to 2.34%. Total business grew to ₹96,402 crore, deposits ₹52,714 crore. CAR at 22.21%, provision coverage ratio at 71%. Bank plans to open 15 more branches in next 6 months.

City Union Bank Ltd. (CUB) reported standalone net profit for the September quarter rose marginally to ₹281 crore from ₹276 crore during the year-earlier on improved recovery and reduced slippages.

“Fresh slippages were ₹225 crore, while the cash recovery was ₹299 crore (₹238 crore from live non-performing accounts and ₹61 crore from technically written off accounts). Going forward, we expect the recoveries will be more than the slippages,” said the bank MD & CEO N. Kamakodi during an interaction.

Interest income grew by 10% to ₹1,304 crore, non-interest income by 5% to ₹182 crore. Net interest income declined by ₹30 crore to ₹538 crore. Net interest margin declined to 3.74% from 4.09%, the private sector lender said in a regulatory filing.

Gross non-performing assets increased to 4.66% of total advances from 4.36%, while net non-performing assets declined to 2.34% from 2.69%.

Total business grew to ₹96,402 crore from ₹92,580 crore, of which deposits accounted for ₹52,714 crore. Current account savings account growth slipped marginally to ₹15,590 crore from ₹15,609 crore.

The bank reported capital adequacy ratio of 22.21% (20.08%). CUB made a provision of ₹293 crore against ₹402 crore. Provision coverage ratio rose to 71% from 66%.

Terming the Q2 performance as satisfactory, he said: “the financial performance will improve further as we progress. The credit demand and deposit growth is in tandem and we are working towards double digit business growth for the current fiscal.”