Gross NPAs rose to 5.21% from 2.94% and net NPA more than doubled to 3.44% from 1.47%.
City Union Bank Ltd.’s (CUB) standalone net profit for the third quarter ended December rose 15% to ₹196 crore from the year-earlier period on account of lower provisions.
Interest income contracted to ₹1,035 crore from ₹1,048 crore, net interest income remained flat at ₹490 crore, non-interest income contracted 27% to ₹160 crore. Net interest margin dropped to 4% from 4.16%, it said in a regulatory filing.
Provisions declined by ₹105 crore to ₹173 crore. Provision coverage ratio was down to 62% from 73%. The bank had a capital adequacy ratio of 19.39%.
Total business improved by 7% to ₹85,109 crore, while Current Account Savings Account deposit rose 17% to ₹13,918 crore.
Gross non-performing asset rose to 5.21% from 2.94% and net NPA to 3.44% from 1.47%.
The private sector lender said that during September 2020, the Supreme Court, through an interim order, had directed that those accounts, which were not declared NPA till August 2020, shall not be declared as NPA till further orders. The interim order was subsequently vacated on March 23, 2021. Hence, the results were not comparable.
During the quarter, the bank has not sold any security receipts (SRs) with regard to NPAs to Asset Reconstruction Co. The bank had an outstanding balance SR of ₹112 crore. Out of this, four accounts constitute 90% of total SRs. Resolution has been finalised and payments have started in all the four accounts. The repayment goes up to FY22
With regard to MSME account, CUB said that it had restructured nine standard borrowers account of ₹13.70 crore.
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