CUB Q2 net profit rises 15% to ₹182 crore

Net interest income increased 1% to ₹478 crore and net interest margin stood at 4.03%

City Union Bank (CUB) Limited reported standalone net profit for the second quarter ended September rose 15% to ₹182 crore.

Net interest income increased 1% to ₹478 crore and net interest margin stood at 4.03%, the lender said in a statement.

Interest income contracted to ₹1,022 crore from ₹1,061 crore, while non-interest income rose 20% to ₹203 crore. Provisions declined by ₹4 crore to ₹223 crore.

Retail banking income rose ₹100 crore to ₹761 crore, corporate/wholesale banking income was down ₹91 crore to ₹244 crore and treasury income slipped to ₹209 crore (₹229 crore). Total income declined by ₹5 crore to ₹1,225 crore.

Gross NPA increased from 3.44% to 5.58%, while net NPA rose to 3.48% from 1.81%. Provision coverage ratio is 62%.

Deposits increased by 12% to ₹46,316 crore, advances grew by 7% to ₹38,012 crore. CASA deposits increased by 26% to ₹13,411 crore and CASA ratio stood at 29% to total deposits.

During the last few quarters, due to COVID and in the absence of other avenue for growth, CUB gave thrust to gold loans, which increased by 73% from ₹4,537 crore to ₹7,849 crore.

During the quarter, the bank restructured 45 standard borrower accounts of ₹322 crore under MSME and 295 borrowers of ₹92 crore under non-MSME.

The private sector lender sold 66 accounts amounting to ₹13.60 crore to Asset Reconstruction Company on cash-cum-security receipt basis, besides another account of ₹18 crore on cash basis.

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