City Union Bank Q1 profit rises 11% to Rs124 crore
Total income rose to Rs883.31 crore during the June quarter from Rs810.93 crore in the same period a year ago
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New Delhi: Private sector lender City Union Bank Ltd has reported a 10.7% rise in net profit at Rs.123.53 crore for the first quarter ended June.
The bank had reported net profit at Rs.111.56 crore in the corresponding quarter of previous fiscal. Total income also rose to Rs.883.31 crore during the quarter under review from Rs.810.93 crore in the same period a year ago, the bank said in a regulatory filing.
Healthy growth in corporate and retail banking helped the bank post decent profits, it said. However, the bank’s provisioning for bad loans were raised substantially despite only a marginal uptick in non-performing assets (NPAs).
The gross NPAs were 2.62% of the gross advances as on June 2016, up from 2.01% share in the same period a year earlier. In absolute terms, these were Rs.555.03 crore against Rs.359.43 crore.
Net NPAs also increased to 1.59% (Rs.333.98 crore) of net advances from 1.32% (Rs.234.33 crore) a year earlier. The bank parked aside Rs.70.75 crore towards bad loan provision for April-June quarter compared to Rs.45.10 crore a year ago.
As per the RBI’s asset quality review guidelines, banks are required to put aside a higher amount for bad loans and even have to make provisions for advances showing signs of slipping into non-performing asset.