City Union Bank Q3 results- Net profit declines 12%

Private sector City Union Bank on Wednesday posted a decline of 11.7 per cent in its net profit to Rs 169.93 crore for the quarter ended in December.The bank had registered a net profit of Rs 192.43 crore in the corresponding period of the preceding financial year.

Bank's total income during the third quarter of financial year 2020-21, however, moved up to Rs 1,277.80 crore as against Rs 1,203.24 crore in the same period of 2019-20, City Union Bank NSE 0.52 % said in a regulatory filing.

Even as the interest income fell 1.2 per cent to Rs 1,048.03 crore during the reported quarter, the bank's income from other sources jumped 61.4 per cent to Rs 229.77 crore.

Other income relates to income from non-fund based banking activities, including commission, fees, gains from securities transactions, ATM sharing fees, recoveries from written-off accounts and other miscellaneous income.

On the asset front, the bank showed improvement with the gross non-performing assets (NPAs) falling to 2.94 per cent of gross advances as on December 31, 2020 from 3.50 per cent in the year ago period.

In value terms, the gross NPAs or bad loans stood at Rs 1,071.69 crore, down from Rs 1,185.43 crore.Net NPAs too came down at 1.47 per cent (Rs 527.15 crore) from 1.95 per cent (Rs 649.41 crore).

Provisions for bad loans and contingencies were more than doubled to Rs 218.50 crore for the quarter under consideration from Rs 81 crore in the year-ago period.

City Union Bank said during the quarter, it has restructured 60 accounts amounting to Rs 321.06 crore."As of December 31, 2020, 233 accounts amounting to Rs 807.07 crore were restructured; the bank holds Rs 26.28 crore towards provision for such accounts," it said.

Further, the bank said it has made an additional provision of Rs 125 crore during the quarter towards contingency arising out of the COVID pandemic and holds a total provision of Rs 465 crore as of December 31, 2020.

Bank's provision coverage ratio stood at 73 per cent at the end of the third quarter of the financial year 2020-21.