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
New Delhi: Private sector lender City Union Bank Ltd has reported a 10.7% rise in net profit at ₹ 123.53 crore for the first quarter ended June.
The bank had reported net profit at ₹ 111.56 crore in the corresponding quarter of previous fiscal. Total income also rose to ₹ 883.31 crore during the quarter under review from ₹ 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 ₹ 555.03 crore against ₹ 359.43 crore.
Net NPAs also increased to 1.59% ( ₹ 333.98 crore) of net advances from 1.32% ( ₹ 234.33 crore) a year earlier. The bank parked aside ₹ 70.75 crore towards bad loan provision for April-June quarter compared to ₹ 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.
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