City Union Bank on Monday reported a 30 per cent jump in net profit at Rs 225 crore for the June 2022 quarter on double-digit growth in interest and non-interest income aided by fall in NPAs.
The private sector lender had posted a net profit of Rs 173 crore in the corresponding period of the previous fiscal.
Total income during April-June quarter of 2022-23 was up by 11 per cent at Rs 1,317 crore as against Rs 1,191 crore earlier, City Union Bank said in a release.
Interest income rose 10 per cent to Rs 1,099 crore, while the non-interest income grew by 12 per cent to Rs 218 crore in Q1 FY23.
The bank’s operating profit was higher by 17 per cent at Rs 447 crore as against Rs 381 crore.
On the assets front, the gross non-performing assets (NPAs) of the lender came down to 4.65 per cent of the gross advances as of June 30, 2022 from 5.59 per cent a year ago.
In value terms, the gross NPAs stood at Rs 1,904 crore, down from Rs 2,035 crore.
Net NPAs or bad loans fell to 2.89 per cent (Rs 1,161 crore) from 3.49 per cent (Rs 1,242 crore).
Among other key metrics, the capital adequacy ratio improved to 20.48 per cent as against 19.58 per cent, while the net interest margin rose to 3.95 per cent from 3.86 per cent.
The yield on advances, however, fell to 9.04 per cent from 9.40 per cent while the cost of deposits was down at 4.43 per cent as against 4.95 per cent.
“The bank made a provision of Rs 222 crore as of June 30, 2022. The total provision towards bad and doubtful debts is Rs 140 crore in Q1FY23 as against Rs 233 crore in the corresponding quarter of last year,” City Union Bank said.
The lender said it rolled out its own credit card ‘CUB Dhi Visa Credit Card’ for its customers with all the features available in the industry currently.
Total business of the bank stood at Rs 89,706 crore at the end of the June 2022 quarter, up by 11 per cent from a year ago.
“Total advances increased by 12 per cent for Q1FY23 to Rs 40,934 crore from Rs 36,395 crore in Q1FY22,” it said, adding that it expects a growth rate of 15 – 18 per cent for FY23.
Stock of City Union Bank closed at Rs 162.80 apiece on BSE, up by 1.12 per cent.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)