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City Union Bank Q1 benefits: Net profit down 17% at Rs 154 cr

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NEW DELHI: Non-public sector City Union Bank (CUB) on Thursday described a 17 per cent fall in net profit at Rs 154.04 crore for the June quarter.

The bank had posted some sort of net profit of Rs 185.65 crore inside the corresponding period of the previous monetary, CUB said in a regulating filing.

It had logged a loss of Rs 95.29 crore in the earlier quarter ended March 2020.

Total income during April-June 2020-21 rose to Rs 1,209.95 crore from Rs 1,192.53 crore in the identical quarter last year.

Provisions regarding bad loans and eventualities increased to Rs 157 crore through Rs 115.75 crore earlier. However, it was down substantially from Rs 450.38 crore parked aside in the earlier Q4 FY20.

Asset excellent showed slight deterioration, with all the gross non-performing assets (NPAs) rising to 3.90 percent of the gross advances like on June 30, 2020, from 3.34 percent as on June 30, 2019.

In value phrases, gross NPAs stood at Rs one,346.09 crore as compared to Rs 1,076.22 crore sooner.

Net NPA ratio very increased to 2.11 per cent (Rs 716.35 crore) from 1.89 per cent (Rs 599.96 crore).

On the COVID-19 situation, the bank said it includes sufficient capital and ample liquidity to support its organization growth which would continue to be the debate area during this period.

City Union Bank said it has designed an additional ad-hoc provision involving Rs 100 crore in order to meet any future contingency that comes out of the pandemic.

“Thus the whole provision in this regard held from the bank as on July 30, 2020 is Rs 202 crore which is more than the RBI prescribed rules,” it added.

Provision coverage ratio as per RBI guidelines is 68 percent as on June 30, 2020, the bank said.

The bank’s scrip closed at Rs 116.80 each on BSE, down zero.97 per cent.

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