City Union Bank has recorded a 15 per cent growth in its net profit at ₹182 crore for the second quarter ended September 30, 2021 when compared with ₹158 crore in the year-ago period helped by other income and lower expenses amid lower interest income.
Interest income stood at ₹1,022 crore as against ₹1,061 crore, while other income was higher at ₹203 crore (₹169 crore), spurred by recoveries from written off accounts.
Net interest income was marginally higher at ₹478 crore as compared to ₹475 crore.
Interest expenses were lower at ₹544 crore against ₹582 crore and total expenses stood at ₹820 crore against ₹846 crore.
Operating profit was higher at ₹405 crore when compared with ₹385 crore in Q2 of previous fiscal.
Provisions (other than tax) & contingencies were at lower ₹148 crore against ₹177 crore in the year-ago quarter. But provisions for bad debts stood at ₹118 crore against ₹32 crore a year-ago.
Gross NPA rises
Gross NPA of the bank increased to 5.58 per cent as of September 2021 quarter when compared with 3.44 per cent in the year-ago quarter, but fell marginally from 5.59 per cent in the June 2021 quarter.
Net NPA also increased to 3.48 per cent from 1.81 per cent in the year-ago quarter. In the June 2021 quarter, it was 3.49 per cent.
During this September quarter, CUB restructured 45 standard borrower accounts to the tune of ₹322 crore under MSME and 295 borrowers to the tune of ₹93 crore under Non-MSME category. Restructured standard advances to gross advances stood at 5.90 per cent as of September 2021.
Deposits of the bank increased by 12 per cent to ₹46,316 crore from ₹41,021 crore, while advances grew by 7 per cent to ₹38,012 crore from ₹35,437 crore.
Provision coverage ratio of the bank stood at 62 per cent as of September 30, 2021.