Shareholders of City Union Bank (CUB) have given the nod for the bank?s proposed qualified institutional placement (QIP), to raise around R350 crore. Board of directors bank had on June 22 resolved to seek the approval of the shareholders of the bank for QIP.
?Every year we used to renew the shareholders mandate to raise money through QIP so that as and when required we will be able to raise money for capital needs”, N Kamakodi, the managing director and CEO of CUB had said in August. Annual general body meeting has also gave approval of the appointment of three new directors ? T K Ramkumar, S Bernard and N Kanthakumar.
The bank had reported a 26.2% rise in net profit at R73.88 crore for the first quarter against R58.51 crore in the same period last fiscal. Total income for the April-June quarter jumped to R566.90 crore from R417.02 crore during the same period last year, registering 36% growth.
Despite difficult economic conditions, the bank could achieve a good performance in the first quarter. Gross NPA was cut from 1.22% to 1.07% and net NPA level was brought down from 0.51% to 0.50% with a provision coverage ratio of 75%.