Kumbakonam-based private sector lender City Union Bank (CUB) on Saturday reported an 11% jump in its profit after tax (PAT) at Rs 218 crore for the third quarter of FY23 as compared to Rs 196 crore in the corresponding quarter last fiscal, on the back of higher interest income and better asset quality.
The total income of the bank stood at Rs 1,430 crore as against Rs 1,195 crore, logging a growth of 20%.
The bank earned net interest income (NII) of Rs 556 crore as against Rs 490 crore, with a growth rate of 13%, while non interest income was at Rs 224 crore as against Rs 160 crore, registering a growth of 40%.
The net interest margin (NIM) was at 3.97%, CUB said in a statement.
The gross NPA as on December 31, 2022, was reduced to 4.62% from 5.21% and the net NPA decreased to 2.67% from 3.44%.
The provision coverage ratio stood at 67%. The bank’s capital adequacy as per RBI guidelines on Basel III norms was at 20.47% and tier-1 capital adequacy was at 19.39%, well above the regulatory requirements.
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The total business of the bank grew by 9% to Rs 93,006 crore for the period ended December 31, 2022, from Rs 85,109 crore.
Total deposits increased by 7% to Rs 49,997 crore from Rs 46,722 crore. CASA increased by 5% to Rs 14,606 crore from Rs 13,918 crore and CASA portion stood at 29% to total deposits.