 "City Union Bank Q4 net jumps 88% to Rs 209 cr on less bad loan provisions")
Private sector lender City Union Bank on Friday reported a 88 per cent jump in its net profit at Rs 208.96 crore for the quarter ended March 2022 on the back of fall in provisions for bad loans and contingencies.
The bank had posted a net profit of Rs 111.19 crore in the corresponding quarter a year ago.
Total income during January-March quarter of 2021-22 rose to Rs 1,252.87 crore, as against Rs 1,135.43 crore in the same period in 2020-21, City Union Bank said in a regulatory filing on Friday.
The bank trimmed its bad loans proportion with the gross non-performing assets (NPAs) declining to 4.70 per cent of the gross advances as of March 31, 2022, as against 5.11 per cent in the year-ago period.
In value terms, the gross NPAs or bad loans of the bank stood at Rs 1,933.18 crore, up from Rs 1,893.19 crore in the year-ago period.
Net NPA, however, was only a tad lower at 2.95 per cent as against 2.97 per cent. Value wise, it was higher at Rs 1,191.10 crore as against Rs 1,075.19 crore.
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This led to a lower provisioning requirement for bad loans and contingencies for March 2022 quarter at Rs 171 crore, as against Rs 253 crore parked aside in the year ago period.
For the entire fiscal year FY22, bank's net profit rose by 28.2 per cent to Rs 760.17 crore, from Rs 592.82 crore in FY21.
Total income during the year was marginally up at Rs 4,863.86 crore, from Rs 4,823.45 crore.
The bank said its board has recommended a dividend of Re 1 per share (100 per cent) on face value of Re 1 per share of the bank for the financial year 2021-22. The payment of dividend is subject to approval by the shareholders of the bank at the ensuing annual general meeting, it said.
The provision coverage ratio of the bank stood at 64 per cent as on March 31, 2022.
Stock of City Union Bank closed at Rs 126.65 apiece on BSE, up by 0.12 per cent from previous close.
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