City Union Bank (CUB) has reported a 15% growth in net profit during the fourth quarter ended March 31, 2013 at Rs 82.48 crore as compared to Rs 71.98 crore in the same quarter previous fiscal. The Bank has said that it may need another Rs 600-700 crore external fund by 2016 to meet its growth target.
The bank has reported a 26% growth in total income at Rs 677 crore as against Rs 537.32 crore.
N Kamakodi, managing director & CEO, City Union Bank, said “despite difficult economic situation, we could register reasonably well earning results”.
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Gross NPA was at 1.13% while net NPA stood at 0.63%. Though there was a marginal increase in net NPA level, from 0.44% registered m the same quarter last fiscal, the gross addition in absolute terms during the whole year was around Rs 50 crore. The provision coverage was at 71%.
Bank's total business rose by around 25% to Rs 35,648 crore, from Rs 28, 563 crore in FY 2012. Kamakodi said that the bank's net worth as on March 31, 2013 increased by 31% to Rs 1631 crore from Rs 1243 crore, a year ago.
Commenting on capital adequacy ratio (CAR), he said, it is well above levels prescribed by the Reserve Bank of India at 13.98% of which tier I CRAR was at 13.27%.
The board of directors has declared an interim dividend of 100% and will decide on the final dividend once they receive the second tranche of call money on the just concluded rights issue, said Kamakodi.
Of the Rs 250 crore rights issue for which which the bank has got approval in January this year, it had already raised Rs 125 crore and the remaining Rs 125 crore will be raised in this quarter.
Since the bank has set a target of Rs 30,000 crore in advances by 2015-16, the bank would would need around Rs 3,000 crore as capital reserves.
"Right now we have around Rs 1600 crore as capital and with Rs 250 crore rights issue proceeds and another Rs 600 crore being added as the profits, we may need another Rs 600 crore to Rs 700 crore external fund raising by 2016, for which options including QIP will be explored”, said Kamakodi.