City Union Bank posts ₹285 crore profit in Q2
City Union Bank has reported a marginal increase in its net profit at ₹285 crore for the quarter ended September 30, 2024, when compared with ₹281 crore in the year-ago quarter on the back of higher provisions and tax expenses.
The old private sector bank’s operating profit saw an 11 per cent rise at ₹428 crore, up from ₹387 crore in Q2 of the previous fiscal year. This increase was driven by an 8 per cent boost in net interest income, which climbed to ₹582.5 crore from ₹538 crore in Q2 of FY24, according to the bank’s statement.
Interest income rose by 10 per cent to ₹1,434 crore, compared to ₹1,304 crore, while non-interest income surged by 24 per cent to ₹226 crore, up from ₹182 crore. Provisions and contingencies stood at ₹70 crore (₹56 crore), while tax expenses were at ₹73 crore (₹50 crore).
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The bank’s gross non-performing assets (NPA) decreased to 3.54 per cent for the September 2024 quarter, down from 4.66 per cent a year ago and 3.88 per cent in the preceding quarter. The net NPA also declined to 1.62 per cent, compared to 2.34 per cent in the same quarter last year and 1.87 per cent in Q1 of the current fiscal year.
Deposits increased by 9 per cent to ₹57,369 crore from ₹52,714 crore. The CASA (Current Account Savings Account) grew by 8 per cent to ₹16,893 crore, up from ₹15,590 crore. Advances rose by 12 per cent, reaching ₹48,722 crore compared to ₹43,688 crore. The CASA ratio constituted 29 per cent of total deposits.
For the half-year ended September 30, 2024, the bank’s net profit increased by 8 per cent to ₹550 crore, up from ₹508 crore in the corresponding period last year.
Among total gross advances of ₹48,722 crore, loans to major industries accounted for 24 per cent, with the remaining portion distributed among categories such as agriculture, trade, services, and gold loans.
The cost of deposits rose to 5.73 per cent in H1 FY25, compared to 5.44 per cent in H1 FY24, while the yield on advances improved to 9.70 per cent, up from 9.65 per cent in H1 FY24.