City Union Bank posts 23% growth in net profit at ₹937 crore in FY23

City Union Bank It posted a 23 percent YoY growth in net profit for FY23 at Rs.937 crore. The Kumbakonam-based private sector lender recorded a net profit of Rs. 760 crore for the financial year ended FY22.

Interest income grew by 15% year-on-year to ₹4,714 crore (4,105 crores) while interest expense increased by 17% to ₹2,552 crore (2,188 crores). The net interest margin was 3.89 percent.

The lender’s asset quality has improved over the previous fiscal year. Total non-performing assets as a percentage of total assets improved to 4.37 percent (4.70 percent). Net NPA fell to 2.36 percent (2.95 percent). In terms of value, total NPA fell marginally to Rs.1,920 crore (Rs.1,933 crore) in FY23.

Total deposits grew by 10 per cent to ₹52,398 crore (47,690 crores) while advances grew by a modest 7 per cent to ₹43,971 crore (41,156 crores).

Q4 profit

The bank’s net profit grew by 4 per cent year-on-year in Q4 FY23 to Rs. 218 crore (Rs. 209 crore) while interest income for the fourth quarter grew by 17 per cent to Rs. 1,228 crore (Rs. 1,050 crore). .

The company announced a dividend of $1 per share for 2022-23. On the NSE, shares of City Union Bank closed at INR 139.45 apiece on Friday, up 1.46 percent from Thursday’s closing price.