Union bank

City Union Bank Q3 net rises 15% to Rs 196 crore due to lower provisioning


City Union Bank (CUB) on Friday announced a 15% increase in net profit to Rs 196 crore for the quarter ended December 2021 on lower provisioning requirements.

The private sector lender had posted a net profit of Rs 170 crore in the same quarter a year ago.



Total revenue, however, was down to Rs 1,195.24 crore from Rs 1,267.80 crore in Q3 FY21, CUB said in a regulatory filing.

While basic interest income fell to Rs 1,035.24 crore in the quarter from Rs 1,048 crore a year ago, income from other sources fell to Rs 160 crore from Rs 220 crore .

On the other hand, total expenses (excluding provisions and contingencies) were higher at Rs 825.63 crore against Rs 819.36 crore.

Provisioning for bad debts and contingencies during the quarter fell to Rs 123.50 crore from Rs 208.50 crore, even as there was a spike in bad debts.

Gross non-performing assets (NPA) climbed to 5.21% of gross advances as of December 31, 2021, from 2.94% a year ago.

In terms of value, gross NPAs stood at Rs 1,998.55 crore, up from Rs 1,071.68 crore a year ago. Compared sequentially, it fell by 5.58% (Rs 2,119.34 crore) as of September 30, 2021.

Net NPA or Bad Debts increased from 1.47% (Rs 5,271.55 crore) to 3.44% (Rs 1,295.91 crore). Quarter on quarter, it was down from 3.48% (Rs 1,294 crore).

The lender said it declared an account amounting to Rs 17.62 crore as fraud and the supply of Rs 4.40 crore was made in the fourth quarter of FY21. The remaining provision of Rs 13.22 crore was created by transfer from general reserves and for nine months until December 2021 the remaining provision is provided by debiting the profit and loss account and creating general reserves.

The bank’s stock closed flat at Rs 144.75 each on BSE.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor