“The Reserve Bank of India has conducted the on-site Inspection for Supervisory Evaluation (ISE) for the Financial Year 2021-22 from October 7, 2022 to November 18, 2022 and the final meeting concluded on December 19, 2022,” City Union Bank said in an exchange filing on Tuesday after market hours.
As per its final report on Risk Assessment it has inter-alia reported divergence in additional gross NPA for the said financial year amounting to Rs 259 crore, in accordance with the circulars cited above, the bank said.
The divergence to the tune of Rs 259 crore consists of 13 borrower accounts (o/s balance > Rs 1 crore) for an amount of Rs 230 crore and 218 borrowers (o/s balance < Rs 1 crore) for an amount of Rs 29 crore, City Union Bank said.
At 09:24 AM; the stock traded 7 per cent lower at Rs 175.20, as compared to 0.42 per cent rise in the S&P BSE Sensex. The average trading volumes at the counter jumped nearly 1.5 times with a combined 5.2 million shares changing hands on the NSE and BSE.
Despite today’s sharp decline, in the past six months, City Union Bank has outperformed the market by surging 46 per cent, as compared to 20 per cent rally in the benchmark index. The stock hit a 52-week high of Rs 205 on December 15, 2022.
As on September 30, 2022, total outstanding restructured borrower accounts was 1,772 amounting to Rs 1,960 crore or 4.6 per cent of the book, against which bank has provisions of Rs 160 crore and Rs 40 crore towards erosion on FV of accounts. Of the total, 62 per cent of borrowers have started repayments. SMA 2 book of the OTR pool is ~Rs 200 crore.
With regards to the SpiceJet account, the company has been servicing its dues regularly, interest dues have been repaid as per the agreed schedule. Out of Rs 100 crore, Rs 17.50 crore has already been repaid; the remaining Rs 82.5 crore would be due by June’23. Slippages would stabilize to pre-covid levels of 2-2.5 per cent over the course. Recovery trends remain strong and in the same range, analysts at Prabhudas Lilladher said in September quarter result update.
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