Kumbakonam-headquartered private sector lender City Union Bank (CUB) on Wednesday registered a 16.95% jump in its net profit to Rs 144.74 crore for the second quarter as against Rs 123.76 crore in the corresponding quarter of the previous fiscal. The bank reported an 11.31% increase in total income at Rs 996.11 crore as compared to Rs 894.87 crore in the same quarter last fiscal. N Kamakodi, MD & CEO, CUB told media persons that steady growth in advances and a significant growth in net interest income enabled the bank to post a sizeable profit for the second quarter.
The bank’s advances grew by close to 15% while net interest income increased by around 18% in the quarter.
He said that on the asset front, the bank was able to contain the NPAs with gross and net NPA levels staying at 3.07% and 1.76%, respectively. The provision coverage stood at 63%.
The capital adequacy of the bank, as per Basel III norms, was at 15.31%. The total business of the bank grew by 11.19% to Rs 56,270 crore from Rs 50,608 crore. CASA deposits grew by 21% as on September 2017, which is 23% of the total deposits.