City Union Bank Q3 results: Profit and income sees double-digit growth, asset quality improves
City Union Bank has posted double-digit growth across all major financial indicators, with a notable improvement in asset quality during the December 2024 quarter.
The old private sector bank saw its net profit rise by 13 per cent to ₹286 crore for the quarter ending December 31, 2024, compared to ₹253 crore in the year-ago period. This growth was driven by a substantial increase in operating profit despite higher provisions.
Operating profit grew by 20 per cent, or ₹436 crore, from ₹364 crore in the year-ago period, according to the bank’s statement.
Provisions (excluding tax) and contingencies also rose significantly to ₹75 crore, up from ₹46 crore in the previous year.
Interest income was up 12 per cent, amounting to ₹1,479 crore compared to ₹1,326 crore. Non-interest income saw an 18 per cent increase, reaching ₹228 crore, up from ₹193 crore. Net interest income also grew by 14 per cent to ₹588 crore, from ₹515 crore.
Net interest margin (NIM) stood at 3.58 per cent for the quarter, an increase from 3.5 per cent in the year-ago period. The bank’s asset quality improved with a reduction in gross non-performing assets (NPA), which stood at 3.36 per cent as of the December 2024 quarter, down from 4.47 per cent in the same quarter last year and 3.54 per cent in the preceding quarter. Net NPA also decreased to 1.42 per cent from 2.19 per cent a year ago and 1.69 per cent from the previous quarter.
Deposits increased by 11 per cent, to ₹58,271 crore, from ₹52,726 crore, while advances grew by 15 per cent to ₹50,409 crore, compared to ₹44,017 crore in the previous year.
For the nine months ending December 31, 2024, City Union Bank reported a net profit of ₹836 crore, marking a 10 per cent increase from ₹761 crore in the same period last year.
As of December 31, 2024, the bank’s capital adequacy ratio, in compliance with Reserve Bank of India (RBI) Basel III norms, was 22.26 per cent, with Tier-1 capital adequacy at 21.29 per cent, well above the regulatory requirements.
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