City Union 2qtr net rises 14.7%: eyes 15-18% growth in FY16-17

Private sector City Union Bank's net profit rose by 14.7 per cent to Rs 123.74 crore for the quarter ending September on healthy growth in advances even as bad loans increased during the period.

The Tamil Nadu-based bank had registered a net profit of Rs 107.85 crore during the corresponding quarter of the previous fiscal.

Total income rose by 7.88 per cent to Rs 894.87 crore during the second quarter as against Rs 829.45 crore in the same period previous fiscal, City Union Bank Managing Director and Chief Executive Officer N Kamakodi said here.

"There has been a growth of 17 per cent in the total advances. The bank has been witnessing a 25 per cent CAGR. In 2014-15, it was in single digits. For the financial year 2016-17, we are looking at a growth of 15-18 per cent", he told reporters.
 

While gross Non-Performing Assets (NPAs) as a percentage of loans as on September 30, 2016 increased to 2.69 per cent compared to 2.10 per cent a year ago, Net NPAs grew to 1.63 per cent from 1.36 per cent a year ago.

Provisioning for bad loans rose to Rs 67 crore for the second quarter of 2016-17 compared to Rs 49.85 crore in the same quarter last fiscal.

During the quarter ending September, Kamakodi said the bank had passed the milestone of Rs 50,000 crore business.

On demonetisation of Rs 500 and Rs 1,000 notes, he said there will be a minor impact and disturbances in operations in the coming days. "I think it will take a couple of weeks or so to stabilise".

To a query, he said there were no fund raising plans, as the bank was adequately funded.

Meanwhile, as part of enhancing the banking operations, Kamakodi unveiled a ROBOT -- 'CUB Lakshmi' that would provide service to customers.

"It is under testing right now. We will be launching the Robot in our T Nagar branch. Customers can get details of bank accounts, bank branches through it. Going forward, we will be integrating it with our CBS facility too to make any transactions," he said.

Kamakodi also unveiled a mobile application facility -- 'Mbankplus', in which customers can lock the application with a password preventing misuse of bank accounts through the mobile phone.