City Union Bank Q3 net down 11% on higher provisioning

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February 4, 2021 4:00 AM

The gross NPA was at 2.94% and the net NPA at 1.47%, compared with 3.50% and 1.95%, respectively. The provision coverage ratio was at 73%. CUB in a release said there was no addition to NPA during the Q3FY21 because of the standstill clause as directed by the Supreme Court.

The treasury income increased by Rs 77 crore to Rs 119 crore.

Private sector lender City Union Bank (CUB) on Wednesday reported a decline of 11.45% in its net profit to Rs 170 crore for the third quarter of FY21, compared with Rs 192 crore in the same quarter last fiscal, impacted by additional provisions made towards Covid and other contingencies.

Total income of the bank stood at Rs 1,278 crore, against Rs 1,203 crore, recording a marginal growth.

The gross NPA was at 2.94% and the net NPA at 1.47%, compared with 3.50% and 1.95%, respectively. The provision coverage ratio was at 73%. CUB in a release said there was no addition to NPA during the Q3FY21 because of the standstill clause as directed by the Supreme Court.

The bank already held provision of Rs 340 crore for Covid-19 as on September 30, and during the quarter under review, it made an additional provision of Rs 125 crore to meet any future contingency arising out of the pandemic. Thus, the total provision in this regard as on December 31 stood at Rs 465 crore.

During Q3, the bank had restructured 60 MSME borrowal accounts to the tune of Rs 321 crore. The total restructured MSME accounts stood at Rs 807 crore, consisting of 233 borrowers and the total restructured accounts constitute 2.21% of advances, the lender said.

The net interest margin stood at 4.16%, against 3.96%. The capital adequacy ratio increased to 17.39%, with tier 1 at 16.31% and tier 2 at 1.08% as per Basel III norms. Non-interest income was at Rs 230 crore, against Rs 142 crore. The treasury income increased by Rs 77 crore to Rs 119 crore.

CASA grew 28%, from Rs 9,294 crore to Rs 11,898 crore, with the CASA portion staying at 27% of total deposits. The cost of deposits decreased to 5.16% from 6.17%.

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