1. City Union Bank reports 19% net increase in Q4

City Union Bank reports 19% net increase in Q4

Kumbakonam-based old generation private sector lender City Union Bank (CUB) has reported a 19% increase in its net profit at Rs 99.08 crore for the fourth quarter...

By: | Chennai | Published: May 24, 2015 2:13 AM

Kumbakonam-based old generation private sector lender City Union Bank (CUB) has reported a 19% increase in its net profit at R99.08 crore for the fourth quarter as against R83.34 crore in the same quarter last fiscal. The bank has clocked a total income of R793.65 crore as against R720. 64 crore, registering growth of 10.13%.

Addressing a press conference in Chennai on Saturday, N Kamakodi, MD and CEO of CUB, said improved efficiency in all segments has helped the bank to post a good performance.

The non-interest income (NIM) was higher by 24% to R105.47 crore as against R85.22 crore. While bank’s net interest income grew by 11% to R204.67 crore from R184.66 crore. For the quarter, the NIM stood at 3.40%.

For the whole year, the bank has posted an increase of 14% in  net profit to R395.02 crore from R347.07 crore. The non-interest income increased by 44% to R404.10 crore from R279.86 crore. The bank’s net interest income was higher by 6% at R807.37 crore from R759. 39 crore. The NIM for the year stood at 3.44%.

“We had 11%  growth in the advances figure for the year as a whole. For the financial year 2014, we had about R456 crore of NPA addition, which got reduced to R425 crore for the current financial year,” he said.

During the last financial year, the bank had only 7% growth in advances, this financial year it is about 11% growth.

“Whatever incremental growth rate we have achieved is the combined effort of all the performances across all different areas,” he said.

Kamakodi said that gross NPA level at the end of FY 2015 stood at 1.86% and net NPA at 1.30%. The provision coverage ratio stood at 58%.

The bank has been maintaining capital adequacy ratio well above the minimum levels prescribed by RBI. As on March 31, 2015, the total CRAR of the bank stood at 16.52% of which tier I CRAR was healthier at 16.03%.

CUB gets repayment of Rs 100 crore from SpiceJet
City Union Bank has received the first batch of repayment of R100 crore from low-cost air carrier SpiceJet. “Our exposure to SpiceJet is R200 crore. We received R100 crore as repayment. So, 50% of the payment has been repaid,” N Kamakodi, MD and CEO, CUB, told reporters in Chennai. “We are in continuous discussion and the repayments have been made without any problem. The first R100 crore was paid before March 31, 2015. I think they will repay the balance over a period of time,” he added. (fe bureau)

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