City Union Bank today registered a 12 per cent rise in net profit at Rs 126.62 crore for third quarter ended December 31, 2016, on healthy interest income.
The bank had reported a net profit of Rs 130.06 crore in the corresponding quarter of previous fiscal. “Total income increased to Rs 953.81 crore for the quarter ended December 31, 2016 from Rs 850.28 crore for the same quarter in the year-ago period,” the bank said in a BSE filing.
Its net interest income also grew by 21.40 per cent to Rs 306.98 crore in the December quarter of 2016-17, as against Rs 252.86 crore a year earlier. Also, the bank’s income from other sources increased by a healthy 38.23 per cent to Rs 142.81 crore from Rs 103.31 crore in the year-ago quarter.
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“City Union Bank (CUB) has achieved an impressive growth in gross profit by 32 per cent from Rs 207 crore to Rs 274 crore. This is driven by consistent growth in net interest income over the last 3-5 quarters,” N Kamakodi, Managing Director and Chief Executive Officer, CUB said.
The bank said it increased provisioning for bad loans and contingencies by 56.62 per cent to Rs 146.96 crore for the October-December period of 2016-17, as against Rs 93.83 crore year ago.
The bank restricted its bad loans at 2.98 per cent of the gross advances for the quarter as compared to 2.37 per cent a year ago. Also, net advances were 1.72 per cent of the net loans disbursed during the quarter, up 1.49 per cent in the year ago period.
In value terms, gross NPAs stood at Rs 649.93 crore as against Rs 459.86 crore. Net NPAs rose to Rs 370.66 crore from Rs 286.81 crore a year ago.