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The Bank has added around 50 more branches last year, which has not started contributing to the revenue and the provisioning towards incremental non-performing assets (NPA) has also had its impact on the net profit, which grew marginally, said N Kamakodi, managing director and chief executive officer of CUB.
The bank has reported a 6% increase in interest earned to Rs 450.76 crore from Rs 424.11 crore.
Gross NPA of the bank during the fourth quarter increased to Rs 293.06 crore from Rs 173.10 crore, an increase of around 69%. As a percentage it stood at 1.81% as compared to 1.13% in year-ago period.
Net NPA of the Bank was Rs 197.29 crore as compared to Rs 96.39 crore and as percentage it was 1.23% as compared to 0.63%.
Bulk of the slippage during the quarter and the full year was mainly from the manufacturing sector, especially the steel sector. The company has made a provisioning of around Rs 60 crore during the fourth quarter of the fiscal year, including Rs 23 crore towards the NPA.
The total recovery and upgradation for the fiscal year ended March 31, 2014, was Rs 202 crore, while for the fourth quarter, it was Rs 94 crore.
The Bank has shareholders' approval for qualified institutional placement (QIP) of Rs 350 crore. However, raising funds according to this depends on the market condition, he added. CUB currently hsa around 425 branches and plans are to increase it over 500 branches during the year 2014-15.
Bank's Basel II Capital adequacy ratio (CAR) was at 15.11% as compared to 13.98% and Basel II it was 15.01%.
