City Union Bank posts 4 per cent rise in NII

In the third quarter of the fiscal year 2019-20, City Union Bank reported four per cent QoQ rise in Net Interest Income (NII) to Rs 427.3 crore.

The bank’s profit before tax fell marginally by five per cent QoQ to Rs 227.4 crore. But a lower effective tax rate in the quarter, resulted in a stable profit after tax of Rs 192.43 crore, as compared to Rs 193.52 crore in the preceding quarter.

Capital adequacy ratio as per Basel III norm was at 15.41 per cent in Q3FY20 largely stable as compared to 15.49 per cent in the previous quarter. In terms of asset quality, the bank’s Gross Non-Performing Asset (GNPA) was at Rs 1,185.42 crore whereas; Net Non-Performing Asset (NNPA) was at Rs 649.4 crore. In terms of ratios, GNPA in the quarter was at 3.5 per cent as against 3.41 per cent in Q2FY20 while, NNPA was at 1.95 per cent from 1.9 per cent in Q2FY20.  Besides, annualised ROA during the quarter was at 1.57 per cent.

Provisions during the quarter declined to Rs 81 crore from ~Rs 108 crore in the preceding quarter.

As a response to this result, the stock of City Union Bank largely remained flat. The stock which opened at Rs 225 has been range bound and at 3.07 pm, the stock was trading at Rs 227.3, down by 1.3 per cent from its previous close.