City Union Bank net rises 36%

Higher growth in interest income and other income helped the Kumbakonam-based City Union Bank post 36.4 per cent rise in profit after tax at Rs 21.36 crore for the June 2007 quarter, in comparison with Rs 15.66 crore in the same period last year.

Total income for the quarter soared to Rs 141.73 crore from Rs 96.86 crore in the same period a year ago, posting 46.32 per cent growth.

Net interest income was Rs 128.53 crore, up 44.94 per cent over Rs 88.68 crore posted during the first quarter of the previous fiscal. Other income was up 61.37 per cent to Rs 13.20 crore from Rs 8.18 crore.

The bank's operating profit increased 39.34 per cent to Rs 37.40 crore from Rs 26.84 crore in the previous year. Net interest margin increased to 3.74 per cent (annualised), while net interest income increased to Rs 51 crore from Rs 37.56 crore.

The bank's total provisioning stood at Rs 8.72 crore for the April-June quarter compared with Rs 6.65 crore in the same period a year ago.

Total business during the quarter stood at Rs 8,314 crore, up 36.21 per cent from Rs 6,104 crore. Deposits stood at Rs 4,883 crore as against Rs 3,555 crore and cost of deposits increased to 6.55 per cent. Advances grew by 34.60 per cent to Rs 3,431 crore from Rs 2,549 crore and yield on advances increased to 12.32 per cent.

The percentage of gross NPA to gross advances stood at 2.42 per cent. The percentage of net NPA to net advances declined to 0.98 per cent from 2.49 per cent.

Capital adequacy ratio was 13.42 per cent as on June 30, 2007, and return on average assets rose increased to 1.57 per cent (annualised).