City Union Bank net profit rises 35%

City Union Bank reported a 35 per cent jump in net profits to Rs 12.44 crore for the second quarter ended 30, 2005 compared to Rs 9.21 crore for the corresponding period last year.

Addressing a press conference, S Balasubramanian, chairman and CEO, City Union Bank, said that the bank's operating profit registered a 214 per cent growth to Rs 29.22 crore for the second quarter of 2005-06 compared to Rs 9.31 crore for the same period last year.

The bank reported a jump in profits despite its provisioning of Rs 11.90 crore for the second quarter year ending September 30, 2005, as against the provisioning of Rs 60 lakh for the second quarter in the previous year.

"We were able to garner higher profits during the second quarter of 2005-06 as the bank had moved 80 per cent of its investments to maturity category from the sale category which had negative impact on its last year results," he added.

The bank's total business registered a growth of 25 per cent to Rs 90.7 crore for the second quarter of 2005-06 compared Rs 72.45 crore in the same period.

Capital adequacy ratio fell to 12.29 per cent as on September 30, 2005, from 14 per cent last year.

The bank expects to raise its net worth from Rs 240 crore to Rs 300 crore from internal accruals by the end of the current financial year.