City Union Bank (CUB) has reported a net profit of Rs 140.32 crore during the quarter ended June 30, 2017, as compared to Rs 123.52 crore, a year ago, an increase of 14%. The bank is planning to seek shareholders approval for a Rs 500-crore Qualified Institutional Placement (QIP).
N Kamakodi, managing director and chief executive CUB said that the quarter performance was decent and it was satisfactory compared to peers and industry.
He attributed the increase in profit to 22% growth in net interest margin and increase in credit.
The total income of the bank rose to Rs 960.86 crore from Rs 883.30 crore, a year ago.
Bank’s Gross NPA rose to Rs 734.95 crore from Rs 555.03 crore, while Net NPA rose to Rs 425.95 crore from Rs 333.98 crore.
In terms of percentage, Gross NPA rose to 3.05% of gross advances from 2.62%, while the net NPA rose to 1.79% to net advances from 1.59%.
The bank’s capital adequacy ratio (CAR) as on June 30, 2017 as per RBI guidelines on Basel III norms is 15.87% and Tier I capital adequacy was 15.04%, well above regulatory requirements. The CUB’s provision coverage was 62%.