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.)

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