Business

CUB Q3 net profit slips 11% on provisions

Private sector lender City Union Bank Ltd.’s (CUB) standalone net profit for the third quarter ended December declined 11% to ₹170 crore from ₹192 crore.

Net interest income rose by 14% to ₹489 crore and interest income contracted to ₹1,048 crore from ₹1,061 crore.

Net interest margin increased to 4.16% from 3.96%, the bank said in a regulatory filing.

During the quarter, the lender made a total provision of ₹289 crore, of which ₹125 crore was towards COVID-19, ₹70 crore for income tax and ₹50 crore towards standards assets among others.

The private sector lender also restructured 60 accounts amounting to ₹321 crore.

Capital Adequacy Ratio increased to 17.39%. Provision coverage ratio stood at 73%. No addition to NPA were made the during the quarter, because of standstill clause.

Due to that Gross non-performing asset (NPA) declined to 2.94% from 3.5%, totalling ₹1,072 crore and net NPAs to 1.47% from 1.95%, totalling ₹527 crore.

Up to December 2020, the bank had sanctioned ₹2,079 crore and disbursed ₹1,911 crore under the ECLGS.

For the nine months’ period, total business grew 8% to ₹79,792 crore while CASA deposits increased 28% to ₹11,898 crore.


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Printable version | Oct 21, 2021 10:35:10 PM | https://www.thehindu.com/business/cub-q3-net-profit-slips-11-on-provisions/article33743194.ece

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