Private lender City Union Bank (CUB) has reported that it a earned a net profit of R99.49 crore in the first quarter of this fiscal, rising 10% from R90.29 crore in the same period last financial year.
The bank’s quarterly income was R754 crore, against R703 crore in the same quarter last year, registering a 7.28% growth.
Announcing the bank’s quarterly results here on Wednesday, N Kamakodi, MD and CEO of City Union Bank, said that considering the overall economic situation, the bank had done “okay”.
“Our net NPA has marginally increased to 1.28%, sequentially from 1.23% and 0.63% in the corresponding quarter. The net addition into bad assets in Q1 was R370 crore, mainly because of two steel sector and one brewery sector accounts turning bad. The gross NPA at the end of Q1 stood at R308 crore, which is 1.91% of gross advances versus 1.81% in the sequential quarter. The net NPA stood at R204 crore, which is 1.28% of net advances versus 1.23% in the sequential quarter Q4 FY 2014. The provision coverage ratio stood at 61.11%; it was 61.74% on March 31.2014,” he said. The bank sold bad assets worth R310 crore to ARCs during the first quarter.
The total deposits, as on June 30, 2014, increased by R1,867 crore over the corresponding period to R22,383 crore from R20,516 crore, registering a growth of 9% on a year-on-year basis.
CASA has increased by R741 crore, from R3318 crore to R4,059 crore, reporting a growth of 22% on a y-o-y basis. The growth in savings bank deposits was 24%. The share of CASA in total deposits increased from 16.17% in June 2013 to 18.14% in June 2014. Kamakodi said in the one-year period, the advances portfolio increased by 5%, from R15,388 crore to R16,153 crore. The bank’s headline growth was 5%.